Why is the Liontown share price roaring 7% higher?

The Liontown Resources Ltd (ASX: LTR) share price has started the week with a roar.

In afternoon trade, the lithium miner’s shares are up 7% to $2.20.

Why is the Liontown share price roaring?

Investors have been bidding the Liontown share price higher today despite there being no news out of the company.

However, it is worth highlighting that a number of lithium shares are performing positively today and are outperforming the ASX 200 index.

Here’s a summary of how some ASX lithium shares are faring:

• The Core Lithium Ltd (ASX: CXO) share price has jumped 11% to $1.86
• The Lake Resources N.L. (ASX: LKE) share price is up 5% to $1.18
• The Piedmont Lithium Inc (ASX: PLL) share price has risen 5% to 98.5 cents
• The Sayona Mining Ltd (ASX: SYA) share price is up 5% to 25.7 cents

Why are they rising?

Today’s strong gains appear to have been driven by news that China is easing some of its COVID restrictions.

This has sparked hopes that these actions could kickstart the country’s economy, which could ultimately support demand for electric vehicles.

And given that lithium is a key ingredient in the batteries of electric vehicles, this would be great news for Liontown and the shares mentioned above.

Can Liontown keep rising?

The team at Bell Potter still see plenty of upside for investors.

According to a recent note, its analysts have a speculative buy rating and $2.87 price target on its shares.

Based on the current Liontown share price, this implies a potential return of 30% even after today’s strong gain.

The post Why is the Liontown share price roaring 7% higher? appeared first on The Motley Fool Australia.

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More reading

• Are ASX 200 lithium shares the new recession-proof investment?
• Could Liontown shares keep surging on a weaker Aussie dollar?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Friday
• Why are ASX lithium shares smashing the market today?

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 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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