Are you wanting exposure to the lithium industry while it is down in the dumps?
If you are, then it could be worth considering the three ASX lithium stocks listed below.
These lithium shares have just been named as buys by brokers this month and could generate decent returns. Here’s what they are saying about them:
Arcadium Lithium (ASX: LTM)
Bell Potter remains very positive on the lithium industry and believes that Arcadium Lithium’s beaten down shares offer significant value for money.
It has the lithium giant on its favoured list due to partly to its diversified exposure to lithium and significant production growth potential. The broker said:
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.
Bell Potter has a buy rating and $9.50 price target on its shares.
IGO Ltd (ASX: IGO)
Goldman Sachs may be bearish on lithium, but it is bullish on this ASX lithium stock.
This is due largely to the company’s low costs. It feels this leaves IGO well-positioned to navigate the current environment of low prices. It said:
Greenbushes is the lowest cost lithium asset in our coverage. Production growth more than offsets increasing strip ratio: The addition of CGP3 (under construction) and CGP4 (planned) should take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa (excluding tailings processing of ~0.3Mtpa), and they are planned to be funded from existing Greenbushes debt facilities, combined with Greenbushes cash flows (though we factor in below nameplate). We reiterate our belief that further Greenbushes expansion remains one of the most economically compelling brownfield lithium projects.
Goldman has a buy rating and $8.10 price target on IGO’s shares
Latin Resources Ltd (ASX: LRS)
A speculative option for investors to consider buying is Latin Resources.
It is an ASX lithium stock that is developing the 100% owned Salinas Lithium Project in Minas Gerais, Brazil.
Bell Potter was pleased with its recent mineral resource estimate at the Colina deposit. And given its bullish view on the lithium market, it sees the company as well-positioned for the future. It said:
Colina has the potential to deliver new lithium supply into what we expect to be structurally short markets. Uncommitted offtake and an open share register provide further strategic appeal.
Bell Potter has a speculative buy rating and 40 cents price target on its shares.
The post 3 ASX lithium stocks to buy in June 2024 appeared first on The Motley Fool Australia.
Should you invest $1,000 in Igo Ltd right now?
Before you buy Igo Ltd shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Igo Ltd wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 5 May 2024
More reading
- These ASX shares could rise 25% to 50%
- Guess which ASX lithium stock could rise over 50%
- 2 beaten-down ASX 200 lithium stocks that analysts love
- How Warren Buffett’s advice is guiding the ASX shares I’m buying in 2024
- Here is the latest lithium price forecast through to 2027
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 Goldman Sachs Group. 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.
Leave a Reply