One of the hottest areas of the market over the last 18 months has been the lithium sector.
But given the strong gains that have been generated over this time, investors may be wondering whether it is too late to invest in lithium shares.
The good news is that it doesn't appear to be, based on what analysts are saying about the shares listed below.
Here are three buy-rated lithium stocks:
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Allkem Ltd (ASX: AKE)
The first lithium share to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada. The team at Morgans is very positive on Allkem and recently named the company as its top pick in the sector. The broker expects electric vehicle demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification. Morgans has an add rating and $14.83 price target on its shares.
Lake Resources N.L. (ASX: LKE)
Another ASX lithium share that is rated as a buy is Lake Resources. It is developing the Kachi lithium brine project in north-western Argentina. This is a huge project which is aiming to deliver base case production of 50,000 tonnes of lithium carbonate once operational. But it doesn't stop there. Including its Olaroz and Paso projects, management is targeting annual production of 100,000 tonnes of high purity lithium by 2030. Bell Potter is a fan of the company and has a speculative buy rating and $1.82 price target on its shares.
Liontown Resources Limited (ASX: LTR)
A final ASX lithium stock to consider is Liontown. It is the company behind the Kathleen Valley Lithium Project in Western Australia. This project will be producing 500,000 tonnes per annum of spodumene when it commences in 2024. Pleasingly, it has already signed deals with LG Energy Solution and Tesla for over half of this offtake. This appears to have gone down well with Bell Potter, which has put a speculative buy rating and $3.06 price target on its shares.
