It has been another red day for the Lake Resources N.L. (ASX: LKE) share price on Monday.
In afternoon trade, the lithium developer's shares are down 9% to $1.50.
This means the Lake Resources share price is now down a disappointing 25% since this time last month.
Why is the Lake Resources share price sinking?
Investors have been selling down the Lake Resources share price today amid a broad market selloff.
Unfortunately, shares that are higher up the risk curve, such as lithium miners, have been the most heavily impacted during today's market weakness.
For example, fellow lithium developers Liontown Resources Limited (ASX: LTR) and Sayona Mining Ltd (ASX: SYA) are also down by a similar margin during afternoon trade.
Is this a buying opportunity?
The team at Bell Potter may see the weakness in the Lake Resources share price as a buying opportunity.
The broker currently has a speculative buy rating and $2.83 price target. This implies almost 90% upside for investors over the next 12 months.
Last month the broker commented:
LKE has now announced two non-binding Memorandum of Understandings covering all of the proposed 50ktpa initial lithium product offtake from its Kachi Project (LKE 75%). The Hanwa Co., Ltd non-binding MoU (announced 29 March 2022) for 25ktpa will potentially align LKE with Japanese battery and auto manufacturers.
Today's announced non-binding MoU with Ford Motor Corporation covering 25ktpa adds a further highly credible potential counterparty with a focus on North American markets. The agreements and the counterparties add support to ongoing financing and predevelopment activities for Kachi. They also highlight auto manufacturers' increased interest in participating further up the battery minerals supply chain and with an eye to the ESG credentials of raw materials providers.
