The Liontown Resources Limited (ASX: LTR) share price is having a positive day on Tuesday.
In afternoon trade, the lithium developer's shares are up 3% to $1.89.
This latest gain means the Liontown share price is up 340% since this time last year.
Can the Liontown share price keep rising?
The good news for shareholders is that one leading broker believes the Liontown share price still has a long way to run.
According to a note out of Bell Potter, its analysts have retained their speculative buy rating and $3.06 price target on the company's shares.
Based on the current Liontown share price, this implies potential upside of 60% for investors over the next 12 months.
What did the broker say?
Bell Potter notes that Liontown has reported positive drilling results which confirm the growth potential of the Buldania Lithium Project. The broker commented:
Buldania is LTR's early stage lithium exploration project where a maiden Indicated and Inferred Mineral Resource Estimate of 14.9Mt at 0.97% Li2O and 44ppm Ta2O5 was identified in late 2019.
LTR see Buldania as complementary to its advanced Kathleen Valley Lithium Project and having the potential to provide additional spodumene concentrate to future downstream processing capacity.
We now expect further extension and infill drilling to be completed before LTR updates the current Buldania Mineral Resource Estimate.
In the meantime though, Bell Potter is very positive on the company's Kathleen Valley Lithium Project. The broker believes it leaves Liontown well-placed to benefit from a lithium market that is booming thanks to demand outstripping supply.
Its analysts commented: "LTR is funded for Kathleen Valley's initial development capital where a definitive feasibility study outlined 658ktpa SC6 production and potential for conversion into 86ktpa lithium hydroxide. LTR is independent and debt free; a strong strategic position in a market for lithium facing supply shortages."
