The Lake Resources N.L. (ASX: LKE) share price is deep in the red on Thursday.
In morning trade, the lithium developer’s shares were down as much as 9% to $1.37.
The Lake share price has recovered a touch this afternoon but remains down 5% at $1.43 currently.
Why is the Lake share price falling?
The weakness in the Lake share price has been driven by another market selloff today. This follows a disappointing night of trade on Wall Street, which saw the Dow Jones drop 2.3% and the Nasdaq tumble 4.7%.
Lake isn’t the only lithium share falling today. At the time of writing, the Liontown Resources Limited (ASX: LTR) share price is down 4% and the Sayona Mining Ltd (ASX: SYA) share price is down 7%.
Today’s decline means the Lake share price is now down by almost 40% in the space of a month. However, it is still up almost 600% since this time last year despite this recent weakness.
Is this a buying opportunity?
Based on a note out of Bell Potter from last month, its analysts are likely to see the pullback in the Lake share price as a buying opportunity.
Its analysts currently have a speculative buy rating and $2.83 price target. This implies potential upside of almost 100% over the next 12 months.
The post Lake Resources share price tumbles again: Broker now sees almost 100% upside appeared first on The Motley Fool Australia.
Should you invest $1,000 in Lake right now?
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More reading
- Lake Resources share price drops 9%: Is this a buying opportunity?
- Low charge: Is the party over for ASX lithium stocks?
- Which ASX 200 mining shares were the worst-performing on Friday?
- Why is the Lake Resources sliding 7% into the red on Friday?
- Why is the Novonix share price down 6% on Friday?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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