After rocketing up the last few years, ASX lithium shares have struggled over the past six months or so.
However, Liontown Resources Ltd (ASX: LTR) seems to be an outlier, rising by a phenomenal 120% year to date.
Liontown shares closed Thursday at $2.72 a piece after starting the year at $1.23 a share.
So is it too late to buy? Has it had its run or is there more to come?
Let's take a look at what's happening.
Suitor rejected twice, but could be back
The most significant driver behind the spectacular ascent of Liontown shares is the takeover interest from Albemarle Corporation (NYSE: ALB).
It was revealed in late March that the US company made several takeover approaches to Liontown, making bids for $2.20 and $2.35 per share in October and March respectively.
The Liontown board rejected the proposal both times, calling them "opportunistic".
But the mere demand for the business sent the shares exploding 59% higher on 28 March.
Investors apparently think this story is not over yet and that there could be further bids from a frustrated Albemarle.
Even if the takeover doesn't eventuate, the fact that another corporation was willing to buy Liontown at almost double the undisturbed share price indicates what sort of future it thinks the lithium miner has.
Long-term demand for lithium
So is it worth joining in this chorus of enthusiasm for Liontown?
The professional investment community is divided.
According to CMC Markets, three out of nine analysts currently covering the stock reckon it's not just a buy, but a strong buy.
However, the remaining six analysts think it's best to hold Liontown.
UBS is one team that's bullish on the lithium stock. This week it raised its target share price to $2.80.
Despite the waning commodity price for the battery ingredient, eToro market analyst Josh Gilbert reckons the long-term thirst for lithium cannot be denied.
"Electric vehicle adoption has really only just begun and has a long runway, with lithium demand only set to increase in the years ahead," he said earlier this month.
"According to Bloomberg, lithium-ion battery demand is expected to more than double in 2023 from 2020 levels, whilst EV sales look set to increase by more than 30% in 2023."
