What’s the outlook for the Liontown Resources share price in FY23?

The Liontown Resources Ltd (ASX: LTR) share price powered home in FY22 with a 30% gain for the year.

Now that we’ve rolled over to FY23, trends have shifted and Liontown shares are now 15% down in the past month.

Before the open on Thursday, the Liontown share price was resting at 94.5 cents.

Liontown share price set to roar in FY23?

Analysts are bullish on Liontown’s prospects this financial year and reckon the ASX lithium share is a buy.

Bell Potter recently said Liontown was one of its top lithium picks for FY23. The broker values Liontown shares at $3.06 apiece.

Four analysts covering Liontown rate the share a buy right now, according to Refinitiv Eikon data. There is just one hold rating and no sell ratings.

From this list, the consensus price target for Liontown is $2.08 per share. That means, on average, analysts tip it to deliver more than 120% upside in the next 12 months.

Meanwhile, if company earnings estimates among ASX lithium shares are anything to go by, it appears that the lithium sector is set to continue growing in FY23.

Analysts at Macquarie are bullish on the sector, pricing in earnings growth for Liontown’s peers, Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE).

The broker rates all three shares a buy, with an average 86% upside price target across them.

With that in mind, analyst sentiment is certainly positive on Liontown’s growth prospects and potential share price appreciation.

Liontown has clipped a 26% gain in the past 12 months. This is despite incurring a 43% loss this year to date.

The post What’s the outlook for the Liontown Resources share price in FY23? appeared first on The Motley Fool Australia.

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More reading

• Why are these ASX 200 lithium shares tumbling today?
• ASX battery metals shares trying to power up after a horror June
• Here are the top 10 ASX shares today
• Liontown Resources roared home with a 30% gain in FY22
• Can ASX lithium shares recharge in FY23?

Motley Fool contributor Zach Bristow 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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