Investment in IGO (ASX: IGO) is "clouded by distractions," but confidence can be restored through potential levers, according to a Feb.21 note by Euroz Hartleys.

On Feb. 19, the company reported a fiscal first-half loss per diluted share of AU$1.0328, compared with earnings of AU$0.3798 per diluted share a year earlier.

Revenue from continuing operations for the six months to Dec. 31, 2024, was AU$284 million, down 35% from AU$438.2 million in the same period last year.

Modeling IGO is "incredibly difficult" due to its assets being held through joint ventures (JV), including its Greenbushes lithium operation, in which its Tianqi Lithium Energy Australia (TLEA) JV has a 51% stake, Euroz noted.

Lithium prices are at the bottom of the commodity cycle, and investing counter-cyclically requires confidence, the firm added.

However, the company has potential levers to pull to simplify its investment thesis, reduce cash burn, and explore acquisitions, the financial services firm said.

Euroz Hartleys belives the easiest win for the company is the faster-than-expected rebound in lithium prices, which would see dividends resuming at TLEA.

The financial services firm upgraded IGO's rating to speculative buy from hold but lowered its price target to AU$5.50 from AU$8.

Shares of the company fell past 2% in recent Monday trade.