Top broker tips 55% upside for Liontown share price

A lion dressed in a business suit roars as two sheep sit awkwardly at the boardroom table.A lion dressed in a business suit roars as two sheep sit awkwardly at the boardroom table.

What a year it has been for the Liontown Resources Limited (ASX: LTR) share price. As it currently stands, Liontown shares are trading at $1.19 each, down 1.65% so far today. But over the past 12 months, Liontown has traded as high as $2.19 and as low as 80 cents a share.

In April, Liontown was up more than 20% year to date in 2022. But as of today, this ASX 200 lithium stock has now lost 32% year to date. It’s fair to say that this is a company that is no stranger to volatility.

But it has still been a lucrative investment for many shareholders. Even after the falls we have seen in 2022, Liontown shares remain up a healthy 41.7% over the past 12 months and an incredible 11,800% since August 2017.

But given this history, many investors might be wondering where Liontown shares are heading next.

Is the Liontown Resources share price a buy today?

Well, there is one ASX broker who thinks Liontown has at least another 50% rise left in its tank for the next 12 months.

Last week, my Fool colleague James covered the opinions of brokers at Macquarie on Liontown. Macquarie has retained an outperform rating on Liontown shares, complete with a 12-month share price target of $1.85 per share.

On today’s price of $1.19, that would indeed represent a potential upside of just over 55% if this came to pass.

Macquarie highlights the appointment of Lycopodium Limited (ASX: LYL) to assist with engineering and construction at Liontown’s Kathleen Valley Lithium Project. The broker reckons that this is an important move to make sure the project remains on schedule.

So no doubt this very sunny outlook on the future of the Liontown Resources share price will be welcomed by Liontown shareholders today. But, as always, we shall have to see if what the brokers at Macquarie predict does indeed come to pass.

In the meantime, the current Liontown Resources share price gives this ASX 200 lithium stock a market capitalisation of $2.6 billion. That comes with a price-to-earnings (P/E) ratio of 54.95.

The post Top broker tips 55% upside for Liontown share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 recommended Macquarie Group Limited. 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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