Down 14% this week, are Liontown shares now 'relatively less expensive'?

The Liontown Resources Ltd (ASX: LTR) share price closed just 0.28% lower at $1.79 on Friday after recovering late from a low of $1.72 in early afternoon trade.

Its fellow ASX lithium shares also closed in the red following forecasts from top broker Goldman Sachs that lithium commodity prices will go materially lower from the second half of 2023. But not before they also gained some last-minute ground for investors in the closing moments of Friday trading.

After the dust settled, the Allkem Ltd (ASX: AKE) share price clocked in to register a drop of 1.43% to $13.10. The Core Lithium Ltd (ASX: CXO) share price finished down 0.42% at $1.18. Pilbara Minerals Ltd (ASX: PLS) shares were 0.22% lower at $4.47.

What did Goldman say about the Liontown share price?

According to The Australian, Goldman Sachs cut its 12-month share price target on Liontown to $1.65.

It also initiated coverage on Core Lithium and slapped it with a sell rating and a $1 price target.

In a note, Goldman said:

We see Core Lithium as having run ahead of fundamentals, Liontown looks relatively less expensive.

Which ASX lithium shares does Goldman recommend?

Goldman also initiated coverage on Allkem, giving it a buy rating and nominating it "our preferred lithium exposure". Goldman has a 12-month price target of $15.20 on Allkem shares.

It commented:

With the pricing backdrop, we prefer low cost producers with quality resources to underpin growth optionality and vertical integration over developers.

With optionality across the Americas and Australia on the largest lithium resource in our coverage growing equity LCE production >4x by FY27E, and at a discount to peers at 1.02x NAV (peer average 1.3x), Allkem is our preferred lithium exposure.

Goldman also likes Mineral Resources Limited (ASX: MIN), with a share price target of $94. Although it's a diversified mining company, Mineral Resources is a global top-five lithium producer. 

Liontown looks good to Macquarie

Liontown also has its fans among brokers.

As my colleague James reported recently, Macquarie sees big value in the Liontown share price.

Last month, the broker retained its outperform rating and lifted its share price target to $3.40.

That's more than double the target given by Goldman Sachs this week.

The Liontown share price slipped 14.59% this week.