The Liontown Resources Limited (ASX: LTR) share price has started the week in a positive fashion.
In afternoon trade, the lithium miner's shares are up 3% to $1.67.
This means the Liontown share price is now up over 75% over the last seven weeks.
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Why is the Liontown share price roaring today?
Investors have been bidding the Liontown share price higher today in response to a positive broker note out of JP Morgan relating to the lithium sector.
While its analysts see supply chain issues and a probable recession as a headwind for electric vehicle sales, they have still bumped their lithium demand forecasts higher. This is to reflect higher electric vehicle penetration rate assumptions thanks to government incentives.
This has led to the broker bumping its price targets higher on a range of lithium shares, including Liontown.
What changes have been made?
According to the note, the broker has retained its overweight rating and lifted its price target on Allkem Ltd (ASX: AKE) shares to $21.00.
For Pilbara Minerals Ltd (ASX: PLS), the broker has upgraded its shares to an overweight rating with an improved price target of $4.10.
Finally, the broker's target on the Liontown share price has been lifted by a mammoth 45% to $1.60.
However, with its shares trading largely in line with this price target, the broker has held firm with its neutral rating at this point.
JP Morgan believes investors should be buying Allkem ahead of the others. It has named the miner as its top pick in the lithium space. And with potential upside of over 50%, it isn't hard to see why.
