Major broker Macquarie has weighed in on the lithium market and tipped its preferred ASX shares.
There are four ASX lithium shares that Macquarie thinks will outperform.
Which ones are they and how are they going today?
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Broker reveals preferred ASX lithium shares
Macquarie favours Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS), the Australian Financial Review reports.
The Mineral Resources share price is up 0.61% today and is currently trading at $62.21. Macquarie has placed an $83 price target on the company's shares. This is 33% higher than the current share price.
Macquarie reckons the Pilbara Minerals share price will hit $4.30. Pilbara is rising 1.35% today and is currently trading at $3. This means Macquarie is predicting a 43% upside.
The Macquarie analysts also think ASX lithium shares Allkem Ltd (ASX: AKE) and Liontown Resources Ltd (ASX: LTR) will outperform their peers. The Allkem share price is lifting 3.3% following the miner's results release today showing a record-breaking third quarter. Meantime, the Liontown share price is down 0.3%.
Allkem has a 66.5% interest in the Olaroz lithium carbonate project in Argentina.
Commenting on Allkem, Macquarie said:
AKE's production is expected to increase 125% from 50kt Lithium Carbonate Equivalent (LCE) in FY21 to over 120kt beyond FY26, leveraging the buoyant lithium pricing market.
Liontown is exploring lithium in the Kathleen Valley and Buldania in Western Australia. The company aims to produce battery minerals to power electric vehicles (EV). It states that by 2030, an estimated 145 million EVs will be on the road.
