With so much interest in ASX lithium shares in recent years, many of the established producers seem to be fully priced.
The lithium price itself has roughly tripled this year, making many experts wary about whether the larger producers have had their run.
Arguably, in order to capture the best returns, investors may need to look at smaller players that haven't yet fully realised their potential.
One of those is Global Lithium Resources Ltd (ASX: GL1).
The $497 million company is still at an exploratory stage, with a focus on the Marble Bar Lithium Project in Western Australia's Pilbara region.
Last month, Global Lithium issued new shares to raise $100 million to fund a takeover of the Manna Lithium Project from Breaker Resources NL (ASX: BRB).
Shaw and Partners portfolio manager James Gerrish was asked recently whether he would consider buying this stock, considering the already-elevated lithium prices.
Medium-term prospects 'very positive'
Gerrish told a Market Matters Q&A that he was still bullish on both the lithium thematic and Global Lithium shares.
But with a caveat.
"We are more cautious in the short-term because of market positioning," he said.
"Hence a scaled-in approach is worth considering… around $2.30 adding to the position over time."
The Global Lithium share price closed 1.25% higher on Monday at $2.43.
The stock has roughly doubled since the start of the year, and Gerrish can't see any reason why that ascent can't continue.
"The medium-term backdrop here is a very positive one in our view."
Gerrish is not the only professional loving the look of Global Lithium shares at the moment.
According to CMC Markets, all four analysts currently covering the stock are rating it as a strong buy.
The analysts at Macquarie agree, according to Livewire, predicting a potential 90% upside for Global Lithium stocks at current lithium spot prices.
