Top broker says this little-known ASX lithium share has 150% upside

This lithium newbie has been tipped to double, and then some.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Leo Lithium has had a rough start to its time on the ASX 
  • The lithium stock tumbled on its float and is still trading at 31% less than its IPO offer price
  • However, Barrenjoey reportedly sees a green future for Leo Lithium investors

The Leo Lithium Ltd (ASX: LLL) share price could be in for a major pop after its recent drop, if one top broker is to be believed.

Shares in the ASX newbie have tumbled 31% from its initial public offering (IPO) price, wherein new stock was handed out for 70 cents apiece. The company came to be after Firefinch Ltd (ASX: FFX) spun out its lithium assets in June.

Right now, the Leo Lithium share price is trading at 48 cents.

But its recent suffering might be short-lived. Let's take a look at the whopping price target one top broker has put on the ASX lithium share.

a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.

Image source: Getty Images

Could ASX newbie Leo Lithium shares soar 150%?

The Leo Lithium share price could be in for a huge run on the ASX, according to Barrenjoey.

The broker recently initiated coverage of the shiny new lithium share, slapping it with an overweight rating and a $1.20 price target, The Australian reports.

That represents a potential 150% upside on its current price.

The company holds one of the world's largest undeveloped high-quality spodumene deposits – the Goulamina Lithium Project.

The project is located in Mali. It's to be developed by Leo Lithium and joint venture partner Ganfeng. Its production is expected to kick off in 2024.

Drilling is also ongoing at the project. The ASX lithium stock recently announced drilling results from the project's Danaya deposit, revealing high-grade, thick intercepts and multiple wide mineralised pegmatite zones.

Leo Lithium held $71.5 million of cash at the end of the September quarter, while the Goulamina joint venture housed US$125.5 million. The company also has a US$40 million debt agreement with Gangfeng.

The lithium share is currently trading for 9% less than it was after a disastrous tumble on its ASX float.

In the meantime, however, it peaked at a record high of 81 cents. It also slumped to a record low of 36 cents.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Miner holding a silver nugget.
Resources Shares

Up 82% in 12 months, ASX All Ords silver share jumping today on big US news

The ASX miner is targeting high-grade silver deposits in California.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

This ASX critical minerals company says its mining project could be the world's largest

This project in Malawi could be a game changer in the critical minerals space.

Read more »

Two young African mine workers wearing protective wear are discussing coal quality while on site at a coal mine.
Resources Shares

Whitehaven Coal announces US$900m notes issue and debt refinancing

Whitehaven Coal issued US$900 million in new notes to refinance debt, aiming for lower interest costs and a longer repayment…

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Resources Shares

PLS Group prices US$600m in senior notes for growth and refinancing

PLS Group announced a US$600m notes issue to fund debt refinancing and general purposes, boosting flexibility for its lithium operations.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Resources Shares

Genesis Minerals posts March 2026 quarterly results

Genesis Minerals’ March 2026 quarter saw cash surge to $600 million, strong gold output, and key growth projects advancing.

Read more »

A man smiles as he holds bank notes in front of a laptop.
Resources Shares

New Hope launches $300m convertible notes offer and buyback

New Hope is refinancing $300m of convertible notes, targeting lower costs and extended debt maturity through a new offering.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

Why is this $25 billion ASX mining stock charging higher today?

Investors are piling in after the company reported record cash flow.

Read more »

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today
Resources Shares

Evolution Mining delivers record cash flow and moves to net cash

Evolution Mining delivered record cash flows and moved to net cash in the March 2026 quarter, keeping full-year targets in…

Read more »