By now, most ASX investors would be familiar with the runs that most ASX lithium shares have been on over the past year or two. Although the past few weeks have cruelled these companies' share prices somewhat, the fact remains that long-term investors are still sitting on some tidy profits.
Take the ASX 200's largest lithium share, Pilbara Minerals Ltd (ASX: PLS). Yes, Pilbara shares have fallen more than 30% over the past two months or so, going from over $5 a share to the $3.52 we see today.
But this company still remains up 23% over the past 12 months, and up by an extraordinary 2,250% over the past three years:
It's a similar story with Core Lithium Ltd (ASX: CXO), Sayona Mining Ltd (ASX: SYA), Mineral Resources Limited (ASX: MIN), Liontown Resources Ltd (ASX: LTR) and Allkem Ltd (ASX: AKE). To varying degrees though, of course.
For example, since the start of 2021, Sayona shares have gained an eye-watering 2,000%, rising from 1 cent per share to the 21 cents per share the company is currently going for. But Allkem shares have risen by 'only' 130% or so over the same period, going from $4.47 to the $10.28 we see today.
But after the jitters of the past few weeks, many investors might be getting spooked and tempted to take their profits off the table. So which ASX lithium shares are still worth holding today?
Well, one ASX broker has given its answer to that question.
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Broker UBS names its favourite ASX lithium shares
As reported in the Australian Financial Review (AFR) today, ASX broker UBS is predicting a difficult time for lithium shares going forward.
UBS reckons that new lithium supply coming online from both China and Latin America could see the supply of the future-facing metal double between 2022 and 2025.
As anyone who's studied economics would know, increased supply usually leads to lower prices. And that's not good news for the lithium companies who sell this industrial metal.
But don't panic, not all is lost, according to UBS. The broker still maintains a buy rating on several ASX lithium shares. That's due to an expectation that "the recent collapse in lithium prices may have bottomed out".
So which lithium shares does the broker rate?
Well, it has maintained buy ratings on Allkem, Mineral Resources, and Liontown Resources. That's in addition to IGO Ltd (ASX: IGO) and Wesfarmers Ltd (ASX: WES).
Wesfarmers is not a pure-play lithium company. But the industrial and retailing conglomerate has increased its exposure to lithium in recent years.
Meanwhile, UBS has given Pilbara Minerals shares a neutral rating, in contrast to the shares named above.
So this might come as some comfort for ASX lithium investors today. But let's see what the next few months and years bring to this popular corner of the ASX.
