2 ASX lithium shares analysts rate as buys

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

asx share price increase represented by golden dollar sign rocketing out from white domes of lithiumasx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Although lithium shares have been on fire over the last 12 months, it may not be too late to invest in the sector according to analysts.

For example, the two ASX lithium shares listed below have been tipped as buys recently. Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

The first ASX lithium share to look at is Allkem. It is the company that was formed following the merger of Galaxy Resources and Orocobre. This merger created a top five global player with a collection of world class operations and projects across Western Australia, Argentina, and Canada.

Macquarie is very positive on Allkem. This is due largely to its belief that lithium prices will remain at record levels for a number of years, which bodes well for Allkem’s free cash flow generation in the future.

The broker recently retained its outperform rating and lifted its price target on Allkem’s shares by 13% to $13.60. This compares to the latest Allkem share price of $11.43.

Liontown Resources Limited (ASX: LTR)

Another ASX lithium share to consider is Liontown. It is the company behind the Kathleen Valley Lithium Project in Western Australia. This project will be producing 500ktpa of spodumene when it commences in 2024.

From this, the company has just announced an agreement to sell battery manufacturer LG Energy Solution (LGES) a total of 150ktpa of spodumene for a five-year term with pricing linked to industry recognised price reporting indices for lithium hydroxide monohydrate. It also revealed that it is currently in negotiations with other tier-1 customers for the remaining offtake.

Bell Potter is a fan of the company. It currently has a speculative buy rating and $2.15 price target on the company’s shares. This compares to the latest Liontown share price of $1.72.

The post 2 ASX lithium shares analysts rate as buys appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3rDqPNx

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s