A team at Barrenjoey has put an overweight rating on two ASX lithium shares and an underweight rating on another.
The three ASX lithium shares rated by the broker are Core Lithium Ltd (ASX: CXO), Global Lithium Resources Ltd (ASX: GL1) and Leo Lithium Ltd (ASX: LLL).
Let's take a look at these three companies in more detail.
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Global Lithium
Analysts at Barrenjoey have placed an overweight rating on the Global Lithium share price, The Australian reported on Friday. Global Lithium shares are 0.79% in the red today and fetching $1.885.
Global Lithium is exploring two hard rock lithium projects in Western Australia. This includes the Marble Bar Lithium Project and the Manna Lithium Project. Recently, Global Lithium updated the market on "game-changing" news at these two projects. Manna's resource estimate has been lifted by 230%, while the forecast for Marble Bar is 71% higher.
Managing director Ron Mitchell said:
These game-changing Mineral Resource upgrades, at our 100%-owned Western Australian hard-rock lithium projects, are a great outcome for GL1 following the nearly 85,000m exploration programs we have undertaken safely during 2022.
The Global Lithium share price has surged nearly 197% in the last year.
Leo Lithium
Barrenjoey has reportedly placed an overweight rating on the Leo Lithium share price. The team has put a $1.20 price target on the company's shares. This is more than double the company's current share price of 48.8 cents.
The company is developing the Goulamina Lithium Project in Mali, West Africa. Recently, Leo Lithium advised of more high-grade drilling results at the project. Managing director Simon Hay said:
These additional results from our Danaya drilling program continue to reveal high-grade, thick intercepts and confirm our expectations of multiple, wide mineralised pegmatite zones.
Leo Lithium shares have declined 30% in the last year.
Core Lithium
Core Lithium shares are rising 3.3% today to fetch $1.095. This company is developing the Flinders Lithium Project in the Northern Territory. The team at Barrenjoey rated Core Lithium as underweight with an 85 cent price target, according to The Australian.
However, on the flip side, the team at Macquarie has upgraded Core Lithium shares to an outperform rating with a $1.30 price target this morning. As my Foolish colleague James discussed, this move was partly on valuation grounds given Core Lithium's shares have slid more than 40% since 14 November.
The Core Lithium share price has surged 114.71% in a year.
