The Liontown Resources Ltd (ASX: LTR) share price is starting the week much like it finished the last one.
In morning trade, this lithium developer's shares were down as much as 9% to $1.82.
This meant that the Liontown share price was down 17% over the last two weeks.
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Why is the Liontown share price sinking?
Investors have been hitting the sell button in the lithium industry again amid ongoing concerns that lithium prices could be about to pullback.
This follows bearish notes out of Credit Suisse and Goldman Sachs recently and soaring COVID cases in China. The latter has led to concerns that demand for lithium from the key market could soften and put pressure on prices.
On Wall Street on Friday, the Sociedad Quimica y Minera de Chile (SQM) share price dropped almost 7%, the Livent Corp share price fell almost 9%, the Lithium Americas share price dropped 7%, and the Albemarle dropped close to 4%.
Is this a buying opportunity?
One broker that is likely to see this as a buying opportunity is Macquarie. Earlier this month, the broker retained its outperform rating and lifted its price target on the lithium developer's shares to a lofty $3.40.
Based on the current Liontown share price, this implies potential upside of almost 90% for investors over the next 12 months.
While the broker sees economic slowdowns and rising COVID cases in China as a headwind for the lithium market, it still expects sky high prices to remain.
