The Liontown Resources Limited (ASX: LTR) share price has started the month in a very disappointing fashion.

After just three trading days, the lithium developer’s shares are down 10.5%.

Though, that’s a decent outcome given the Liontown share price was down as much as 19% on 1 June.

What’s next for the Liontown share price?

The Liontown share price could be given a boost and put this recent blip behind it on Monday.

That’s because on Monday the company is scheduled to announce a definitive full form binding offtake agreement with electric car giant Tesla.

Last week Liontown advised that the two parties had mutually agreed to extend the termination date for the binding lithium offtake term sheet until 6 June. This was to allow Liontown and Tesla to complete negotiations for the agreement.

If everything goes to plan, Tesla will be signing up for up to 150,000 dry metric tonnes per annum of spodumene concentrate from Liontown’s Kathleen Valley project from 2024. This represents approximately one-third of the project’s start-up production capacity of ~500,000 tonnes per annum.

This will complement the definitive full-form offtake agreement the company has signed with LG Energy Solution. That agreement is for the supply of 100,000 dry metric tonnes in the first year, increasing to 150,000 tonnes per year in subsequent years.

But it is unlikely to stop there. The company recently confirmed that it continues to progress negotiations with other potential tier-one global customers that would complement its offtake strategy.

Are its shares in the buy zone?

One broker that appears to see a lot of value in the Liontown share price is Macquarie.

Last week the broker retained its outperform rating and $2.50 price target on the company’s shares. This is almost double the current Liontown share price.

The post What’s coming up for the Liontown share price in June? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher
• It was an eventful month for Liontown shares in May. Here’s what went down
• Which ASX lithium shares are rebounding on Thursday, and which are not?
• Is this the real reason ASX lithium shares cratered on Wednesday?

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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The start of the COVID-19 pandemic seems like a long time ago now. 

If you cast your mind back to 2020, most of the developed world was in lockdown. The Australian government then not unreasonably called for an independent enquiry into the origins of the coronavirus.

But China took exception to this suggestion and started a wave of economic punishments designed to pressure and make an example out of Australia.

Massive losers from frosty Canberra-Beijing relations

Two of the biggest victims out of that breakdown in diplomatic relations were Treasury Wine Estates Ltd (ASX: TWE) and A2 Milk Company Ltd (ASX: A2M).

Heavy tariffs on Australian wines and a complete slowdown in daigou sales channels downgraded the companies’ earnings almost instantly.

Treasury shares are still 9% down from August 2020, and the A2 Milk stock price has plunged 76% since July 2020.

Yikes.

But a potential turning point in Australia-China relations came two weeks ago when Labor won the federal election.

Many analysts predicted that an ALP government would thaw Canberra’s frosty relationship with Beijing.

After all, it couldn’t get any worse.

Could a Labor government revive A2 Milk and Treasury Wine?

So one curious investor wondered whether it is now time to wade back into A2 Milk and Treasury Wine, ahead of better diplomatic relations with China.

Shaw and Partners portfolio manager James Gerrish gave his thoughts on this in his regular Market Matters Q&A.

He said his team agrees with that line of thinking.

“Your thoughts are definitely one of the reasons Market Matters is long Treasury Wines,” he said.

“But like A2 Milk, it has delivered a few false dawns over recent times.”

Gerrish suspected new Prime Minister Anthony Albanese can only improve Australia’s rapport with China.

“But the companies also need to start delivering results — hence the answer is a cautious yes.”

The broader analyst community seems to agree with Gerrish’s team that currently Treasury looks the better bet.

According to CMC Markets, six of 11 professionals rate Treasury Wine shares as a buy. Meanwhile, only three out of 14 analysts say the same about A2 Milk.

The post Is it time to buy A2 Milk and Treasury Wines for better China relations? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• The Treasury Wine share price has leapt 6% in 3 weeks. Why this top broker is tipping more gains
• Top broker names 2 of the best ASX shares to buy in June
• What to do with these 3 pummelled ASX shares: advisor
• Can A2 Milk shares cash in on a US deal like Bubs?

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If you’re a growth investor with room for some new portfolio additions in June, then it could be worth considering the two ASX growth shares listed below.

Here’s what you need to know about these buy-rated ASX shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share that could be a buy is Aristocrat. It is a gaming technology company with a portfolio of world class pokie machines and digital games.

In respect to the latter, the company’s growing Pixel United portfolio includes popular games such as Raid: Shadow Legends, Heart of Vegas, Mech Arena, and Vikings: War of Clans. These are generating significant recurring revenues from their millions of daily active users.

Analysts at Citi are very positive on Aristocrat and believe it is well-placed for growth. Citi commented: “Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets.”

The broker currently has a buy rating and $41.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX growth that could be in the buy zone is Xero. It is a cloud-based accounting solution platform provider to small and medium sized businesses globally.

Xero recently released its FY 2022 results and revealed a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion. This was underpinned by a 19% increase in total subscribers to 3.3 million thanks to growth in all markets.

The good news is that Goldman Sachs expects this strong form to continue. It is forecasting a 26.5% increase in revenue to NZ$1.387.1 billion in FY 2023. After which, it is expecting Xero’s revenue to reach almost NZ$2 billion by FY 2025.

But it is unlikely to stop there given its total addressable market of 45 million subscribers globally and plans to monetise its growing user base with its app store.

Goldman Sachs has a buy rating and $118.00 price target on its shares.

The post 2 stellar ASX growth shares analysts are tipping as buys this month appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech shares having such a cracking Friday?
• Xero share price has 19% upside potential, top brokers say
• Buy these 2 ASX shares going for a 25% discount: Morgans
• Experts pick 2 ASX shares to buy that move wealth around
• Why did the Xero share price go backwards in May?

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Lottery Corporation Ltd (ASX: TLC)

According to a note out of Morgans, its analysts have initiated coverage on this lottery company’s shares with an add rating and $5.40 price target. Morgans is very positive on the company due to its defensive qualities and positive growth outlook. It highlights that lottery ticket sales are resilient to economic cyclicality, its cash flows are steady and predictable, and there is a low ongoing need for capex. The Lottery Corporation share price ended the week at $4.43.

Wesfarmers Ltd (ASX: WES)

Another note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this conglomerate’s shares to $58.40. This follows the company’s strategy update, which provided insights into the growth opportunities available for each of its business divisions. In addition, Morgans was pleased that management is confident it can navigate through a more cautious consumer environment. The Wesfarmers share price was fetching $47.15 at Friday’s close.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating and $29.00 price target on this banking giant’s shares. According to the note, the broker believes that lending-derived revenue growth will be hard to come by in the near future. Instead, it expects deposit-derived revenue to be the key growth driver as rates rise and credit slows. In light of this, it expects the current valuation gap between asset growing and revenue challenged banks such as Westpac will close. The Westpac share price ended the week at $24.00.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• What’s in store for the Wesfarmers share price in June?
• Down 9% in a week, is the Lottery Corp share price a buy? 
• What are brokers forecasting for the Westpac share price in June?
• 2 more of this broker’s best ASX share ideas for June
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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