The Liontown Resources Ltd (ASX: LTR) share price finished higher today, up 3.75% to $1.52.
But that's nothing compared to the 70% bump that broker Macquarie is tipping for the next 12 months.
Let's find out why Macquarie is bullish on this ASX 200 lithium share.
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Why will the Liontown share price rise by 70%?
As my Fool colleague James reported on Monday, Macquarie has issued a new broker note.
The team has retained its outperform rating and kept its share price target at $2.60 for Liontown.
This followed news last week that open pit mining has commenced at Liontown's Kathleen Valley lithium project in Western Australia.
Macquarie continues to expect production to commence in the middle of next year. It also likes Liontown's revelation that it might be able to make money from direct shipping ore (DSO) before then.
In its statement, Liontown said:
The expanded Kathleen's Corner open pit will result in more material being moved over the initial project period. Strong lithium market conditions provide a potential opportunity to monetise material not previously expected to be processed as a Direct Shipping Ore (DSO) product, delivering early revenue during the pre- and post-commissioning phase at Kathleen Valley.
Liontown is currently progressing this DSO opportunity with sample composites currently being prepared for potential customers.
What else is happening with Liontown?
Liontown shares were among the best performers of the S&P/ASX 200 Index (ASX: XJO) in January.
The Liontown share price flew 19% higher compared to a 6.2% leap for the benchmark.
During the month, Liontown revealed construction at Kathleen Valley was going to cost more than expected, partly due to a site plan expansion which will increase the initial throughput rate by 20%.
We also learned that Liontown chair Tim Goyder bought an extra $1.5 million worth of shares on-market.
