It has been another difficult session for the Core Lithium Ltd (ASX: CXO) share price.
In morning trade, the lithium miner's shares dropped over 6% to a 52-week low of 80.5 cents.
The Core Lithium share price has recovered a touch since then but currently remains down 3.5% at 83 cents.
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Should you take advantage of the weakness in the Core Lithium share price?
Regular readers may be aware that I've been warning about the potential for the Core Lithium share price to fall materially in recent months. This was due to its valuation in comparison to peers.
Since the release of the aforementioned article, the lithium miner's shares have crashed 35%. So, is now the time to invest?
The good news is that the company's shares are now trading lower than the valuations of even the most bearish of brokers.
For example, both Citi and Goldman Sachs currently have sell ratings and 90 cents price targets on the company's shares. This implies almost 8.5% upside from current levels, which isn't bad for a sell rating!
In addition, Macquarie continues to see significantly more value in the Core Lithium's shares. As recently as last week, its analysts retained their outperform rating and $1.30 price target on them.
While seeing the Core Lithium share price rise to this level seems unlikely in the current environment, if it were to do so, it would mean a massive 57% return for investors buying in at today's price.
What could get its shares rising again?
Given how lithium shares are high up on the risk curve, recent market volatility has hit them hard.
If things calm down and global economic growth and banking system concerns ease, then it would likely give its shares a boost. In addition, a reversal in recent lithium price weakness would be very welcome for the industry and could give its shares a lift.
