The Liontown Resources Limited (ASX: LTR) share price has continued its poor run on Tuesday.
In afternoon trade, the lithium developer's shares are down 2% to $1.23.
This means the Liontown share price is now down 27% in the space of just a month.
What's going on with the Liontown share price?
Investors have been selling down the Liontown share price over the last few weeks amid broad weakness in the lithium industry.
It isn't just Liontown which has seen its shares take a tumble. Over the same period, the Allkem Ltd (ASX: AKE) share price has fallen 17%, the Pilbara Minerals Ltd (ASX: PLS) share price has dropped 19%, and the Lake Resources N.L. (ASX: LKE) share price has crashed 30%.
Given how high up the risk curve that lithium shares are, they have felt the brunt of investor selling during the market meltdown. Though, it is worth highlighting that all four of these lithium shares are still thumping the market with strong gains on a 12-month basis.
In fact, the Allkem share price is the relative laggard in the group with a gain of only 50% over the last 12 months.
Where next for the Liontown's shares?
According to a note out of Macquarie from last week, its analysts see a lot of value in the Liontown share price at the current level.
The broker currently has an outperform rating and $2.50 price target on its shares. This suggests that the company's shares could double in value over the next 12 months.
Macquarie is positive on lithium and particularly Liontown due to its offtake agreements with LG and Tesla. It also highlights that the company has funding in place to cover it until stage one production in FY 2025.
