Up 117% in a year, should you still buy Liontown shares now?

Liontown Resources Ltd (ASX: LTR) shares are sinking today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed Friday trading for $1.455. In early afternoon trade on Monday, shares are changing hands for $1.407 each, down 3.3%.

For some context, the ASX 200 is down 0.9% at this same time.

Despite today’s retrace, Liontown shares remain up an impressive 116.9% since this time last year, smashing the 5.3% 12-month gains posted by the benchmark index.

The miner has been benefiting from a roughly doubling in lithium carbonate prices over this time.

But with shares having already more than doubled over the last year, is the ASX 200 lithium miner still a good buy today?

Liontown shares: Buy, hold or sell?

Alto Capital’s Tony Locantro recently analysed the outlook for the Aussie lithium miner (courtesy of The Bull).

“LTR’s Kathleen Valley lithium project in Western Australia is one of the largest new hard-rock lithium operations globally,” said Locantro, who has a sell recommendation on Liontown shares.

Liontown reported its half year results (H1 FY 2026) on 12 March. Commenting on those results, Locantro said:

The company’s first half year result in fiscal year 2026 highlighted strong operational progress, with production ramping up and revenue increasing significantly from growing concentrate shipments.

However, Liontown reported a net loss of $184 million, reflecting accounting charges and the ongoing costs associated with scaling up the operation.

Summarising his sell recommendation on Liontown shares, Locantro concluded:

While the long-term outlook for lithium demand remains encouraging, the current share price appears to reflect a large portion of the project’s future growth potential. With earnings still developing and the company transitioning through a capital intensive ramp-up phase, the risk-reward balance at current levels favours taking profits following the sector’s recent re-rating.

What’s the latest from the ASX 200 lithium miner?

As Locantro mentioned above, first half production was strong, with Liontown reporting a 70% year on year increase in lithium oxide production to 192,514 dry metric tonnes (dmt). Lithium sales increase by 106% to 189,596 dmt.

But impacted by the ramp-up costs at Kathleen Valley, Liontown reported an underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of $7.7 million.

As at 31 December, the miner had a cash balance of $391 million.

“Kathleen Valley is now a 100% underground operation,” Liontown CEO Tony Ottaviano said.

“The underground ramp-up is on track and we expect the second half to be materially stronger as volumes, recoveries, and pricing all continue to improve,” he added.

Liontown shares closed down 0.6% on the day of the results release.

The post Up 117% in a year, should you still buy Liontown shares now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.