The Lake Resources N.L. (ASX: LKE) share price closed yesterday’s session up 3.25% to 64 cents.

The ASX lithium stock has had a turbulent time of late, with its share price falling 24% in February alone.

But broker Bell Potter says the stock is a buy with a potential 300% upside available to investors.

What will push the Lake Resources share price 300% higher?

Bell Potter has a speculative buy rating on Lake Resources with a 12-month share price target of $2.52.

That implies a 309.8% upside for investors who buy the ASX lithium stock today.

This is welcome news for shareholders, who have been suffering through a bunch of blows lately.

These include a tumbling share price, softening lithium prices, and a bearish outlook on the commodity.

Lake Resources also remains one of the most shorted ASX shares, with 6.9% of its capital shorted. It continues to be the subject of a sustained short-sell attack by US activist group, J Capital too.

Finally, with no production slated until 2024, Lake Resources shares may be attracting less support from investors than producing companies like Allkem Ltd (ASX: AKE), Pilbara Minerals Ltd (ASX: PLS), and Core Lithium Ltd (CXO).

Its flagship Kachi Project is due to commence production in 2024. In 2023, Lake Resources announced two conditional offtake agreements amounting to 50,000 tonnes per annum of lithium carbonate.

Bell Potter likes the look of these deals. Here’s its latest commentary on Lake Resources:

“LKE has … announced two conditional agreements with a combined offtake of 50ktpa lithium carbonate (LC) and listed-level equity placement of 20%.

WMC Energy (Netherlands) and SK On (Korea) have both signed 10-year 25ktpa LC offtake from LKE’s Kachi project.

Both companies are expected to make a 10% equity investment in LKE; WMC at $1.20/sh and SK On at an agreed 20-day VWAP.

Both agreements are conditional on the release of the Kachi definitive feasibility study, Lilac’s demonstration plant successfully operating, completion of financial due diligence on LKE and formal documentation and approvals.”

Bell Potter is tipping earnings per share (EPS) growth of 85.9% for Lake Resources in 2024.

What’s the latest news from Lake Resources?

The company recently presented at the BMO Global Metals, Mining and Critical Minerals Conference.

In its presentation, Lake Resources said demand continues to outweigh supply for lithium.

It notes an ongoing push from the United States and Europe for non-China lithium supply.

Lake said it expected to complete its definitive feasibility study for producing 50,000 tonnes of lithium carbonate per annum by the middle of this year.

The post Top broker says buy Lake Resources shares for potential 300% upside appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares this week
• Why did the Lake Resources share price sink 24% in February?
• These ASX 200 shares were crushed in February
• Here are the top ten ASX 200 shares today
• Here are the 10 most shorted ASX shares this week

Motley Fool contributor Bronwyn Allen has positions in Allkem and Core Lithium. 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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