Allkem will acquire 100% of the Maria Victoria lithium tenement (north of Olaroz) for -$14m and shares in Borax, which Morgan Stanley describes as a non core holding.

Management stated the acquisition allows more efficient development of the Olaroz salar. There is no current resources or reserve at the new tenement. 

The Equal-weight rating and $12.55 target are retained. Industry View: Attractive.

Sector: 0.

Target price is $12.55.Current Price is $12.73. Difference: ($0.18) - (brackets indicate current price is over target). If AKE meets the Morgan Stanley target it will return approximately -1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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