Macquarie names the best ASX lithium shares to buy in 2022

Macquarie has named these lithium shares as buys…

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A group of four people pose behind a graphic image of a green car, holding various symbols of clean electric, lithium powered energy including energy symbols and a green plant representing the rising Vulcan Energy share price

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If you’re looking to invest in resources shares, then it could be worth looking closely at the lithium sector.

This morning the team at Macquarie Group Ltd (ASX: MQG) became even more bullish on the prospects of a number of ASX mining shares with exposure to the white metal.

What is Macquarie saying about lithium?

According to a note out of the Macquarie equities desk, its analysts believe Australia’s leading lithium miners are well-placed to benefit from record spot prices for lithium.

In fact, the broker believes this isn’t just a short term thing. It feels that strong electric vehicle adoption could keep lithium prices at record levels for four years.

In light of this, the broker has boosted its earnings forecasts for a number of active producers materially. It has also lifted the price targets on a collection of lithium shares to reflect the positive sector outlook.

Here’s a summary of its view on these lithium shares:

Allkem Ltd (ASX: AKE)

Macquarie has retained its outperform rating and lifted its price target on Allkem’s shares by 13% to $13.60. This compares to the latest Allkem share price of $9.32. Allkem is the result of the merger between Galaxy Resources and Orocobre.

Liontown Resources Limited (ASX: LTR)

Although Liontown is not yet producing lithium, Macquarie has retained its outperform rating and boosted its price target on the company’s shares by 10% to $2.20. The Liontown share price is currently fetching $1.56.

Mineral Resources Limited (ASX: MIN)

Macquarie remains bullish on Mineral Resources despite its exposure to low grade iron ore as well as lithium. It has held firm with its outperform rating and lifted its price target by 10% to a lofty $79.00. This is notably higher than the current Mineral Resources share price of $51.81.

Pilbara Minerals Ltd (ASX: PLS)

Finally, Macquarie’s top pick among the ASX lithium shares remains Pilbara Minerals. It has retained its outperform rating and increased its price target by a whopping 32% to $3.70. The Pilbara Minerals share price is fetching $2.63 this morning.

Motley Fool contributor James Mickleboro owns Orocobre Limited. 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 Bruce Jackson.

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