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Although lithium stocks have been on fire over the past 12 months, it may not be too late to invest in the sector, according to analysts.
For example, the two ASX lithium stocks listed below have been tipped as recent purchases. Here’s what you need to know about them:
The first ASX lithium stock to look at is Allkem. It is the company that was formed after the merger of Galaxy Resources and Orocobre. This merger created a top five global player with a collection of world-class operations and projects across Western Australia, Argentina and Canada.
Macquarie is very positive about Allkem. This is largely due to the company’s belief that lithium prices will remain at record levels for a number of years, which bodes well for Allkem’s free cash flow generation in the future.
The broker recently maintained its outperform rating and raised its price target on Allkem’s shares by 13% to $ 13.60. This compares with the most recent Allkem share price of $ 11.43.
Liontown Resources Limited (ASX: LTR)
Another ASX lithium content to consider is Liontown. It is the company behind the Kathleen Valley Lithium Project in Western Australia. This project will produce 500 ktpa spodumen when it starts in 2024.
Based on this, the company has just announced an agreement to sell the battery manufacturer LG Energy Solution (LGES) a total of 150 ktpa spodumene for a five-year period of pricing linked to industry-recognized price reporting indices for lithium hydroxide monohydrate. It also revealed that it is currently in negotiations with other tier-1 customers about the remaining purchase.
Bell Potter is a fan of the company. It currently has a speculative buy rating and $ 2.15 price target on the company’s shares. This compares with the recent Liontown stock price of $ 1.72.