The last 12 months have been positive for the lithium industry, despite a bit of a hiccup late in the year. During this time, a number of ASX lithium stocks have risen strongly, generating wonderful returns for investors in a tough share market.
Will 2023 be just as good or even better? While that is impossible to say, brokers certainly believe there's potential for this based on their recommendations summarised below.
Here are five ASX lithium stocks that have recently been rated as buys and tipped to climb meaningfully higher:
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Allkem Ltd (ASX: AKE)
The first ASX lithium share to look at is Allkem. It is a speciality lithium chemicals company with a global portfolio of diverse and high-quality lithium operations. From these operations, Allkem is aiming to grow its production in a manner that allows it to command a 10% share of global lithium demand. A recent note out of Goldman Sachs reveals that its analysts have a buy rating and $15.20 price target on its shares.
Core Lithium Ltd (ASX: CXO)
Core Lithium is the lithium developer behind the Finniss Lithium Project in the Northern Territory. It is aiming to commence production in 2023, which means it shouldn't be long until the company is generating free cash flow. Macquarie expects the company to be printing cash in both FY 2024 and FY 2025. As a result, the broker has put an outperform rating and $1.30 price target on its shares.
Liontown Resources Limited (ASX: LTR)
Another ASX lithium stock that isn't too far from being a producer is Liontown Resources. It is the owner of two promising projects – the 100%-owned Kathleen Valley and Buldania projects in Western Australia. The former recently received approval for a 4Mtpa operation, which will supply tier-1 offtake customers including LG Energy Solution, Tesla, and Ford. Bell Potter is a fan and currently has a speculative buy rating and $2.87 price target on Liontown's shares.
Mineral Resources Limited (ASX: MIN)
Morgans is a big fan of this mining and mining services company due largely to its exposure to lithium. In addition, the broker highlights that Mineral Resources has transformed from being primarily leveraged to high-cost/short-life iron ore operations to low-cost/long-life iron ore and lithium assets. It currently has an add rating and $94.00 price target on its shares.
Pilbara Minerals Ltd (ASX: PLS)
A final ASX lithium share that has been tipped as a buy recently is Pilbara Minerals. It is the owner of the Pilgangoora Project, which is one of the largest hard rock lithium deposits in the world and considered strategically important within the global lithium supply chain. Macquarie is a big fan of Pilbara Minerals and has an outperform rating and $7.50 price target on its shares.
