Brokers name 3 ASX lithium stocks to buy now

A futuristic view of electric vehicle technology with speeding bright light trails indicating power.

A futuristic view of electric vehicle technology with speeding bright light trails indicating power.

With electric vehicle and renewable energy adoption growing rapidly, demand for battery materials has been insatiable. This has led to sky high prices for lithium, which bodes well for the ASX lithium stocks listed below.

And while their shares have been on fire over the last 12 months, the good news is that analysts don’t believe it is too late to invest. Here’s what they are saying about these buy-rated lithium stocks:

Allkem Ltd (ASX: AKE)

The first ASX lithium stock to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada. Unlike the many explorers on the ASX, Allkem is already benefiting from sky high prices for lithium. In fact, after a big rise in prices during the March quarter, Allkem expects even stronger pricing in the June quarter. It is forecasting an average of US$5,000 per dry metric tonne of spodumene concentrate and US$35,000 per tonne for its lithium carbonate.

Morgans is very bullish on Allkem. It currently has an add rating and $14.83 price target on its shares.

Lake Resources N.L. (ASX: LKE)

Another ASX lithium stock that analysts rate as a buy is Lake Resources. It is developing the Kachi lithium brine project in north-western Argentina near one of Allkem’s operations. This project is aiming to deliver base case production of 50,000 tonnes of lithium carbonate once operational. After which, the company is aiming to take group annual production to 100,000 tonnes by 2030. For now, Lake has signed away all of its initial 50,000 tonnes of lithium product offtake to Hanwa and Ford.

Bell Potter is positive on the company and has a speculative buy rating and $2.83 price target on its shares.

Mineral Resources Limited (ASX: MIN)

A third ASX lithium stock for investors to look at is Mineral Resources. It has exposure to lithium through its Mt Marion Lithium Project and Wodgina Lithium Project. The latter is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years.

Goldman Sachs is very positive on the company’s outlook and is forecasting a more than doubling of group EBITDA to over A$2bn in FY 2023 thanks largely to higher lithium prices. Its analysts currently have a buy rating and $73.80 price target on the company’s shares.

The post Brokers name 3 ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem 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 Scott Phillips.

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