2 of the best ASX lithium stocks to buy this month

If you believe the worst is over for the lithium industry and you are looking for stocks to buy, then it could be worth checking out the two listed below.

These ASX lithium stocks have been named as preferred picks by analysts at Bell Potter this month. Here’s what the broker is saying about them:

Arcadium Lithium (ASX: LTM)

Arcadium Lithium is the lithium giant that was formed from the merger of Allkem and Livent Corp last year.

Bell Potter likes the company due to its diverse asset portfolio, robust balance sheet, and strong production growth outlook. It explains:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.

The broker has a buy rating and $10.40 price target on the ASX lithium stock. This implies potential upside of almost 40% for investors.

Mineral Resources Ltd (ASX: MIN)

Another option for investors to look at in the lithium industry is Mineral Resources.

Bell Potter likes the company due to its lithium production growth and diversified income streams. It said:

In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN’s earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.

Its analysts have a buy rating and $75.00 price target on Mineral Resources’ shares. This suggests upside potential of almost 13%.

The post 2 of the best ASX lithium stocks to buy this month appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Morgans names the best ASX 200 stocks to buy in March
• Guess which ASX lithium stock just surged 94% on a deal with Mineral Resources
• 25 ASX 200 shares with ex-dividend dates next week
• Lithium and cheese: Bell Potter tips 20%+ returns from these ASX 200 stocks

Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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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