The Liontown Resources Ltd (ASX: LTR) share price is on course to start the month with a decline.
In afternoon trade, the lithium developer's shares are down 1.5% to $2.72.
Not that shareholders will mind too much given that its shares are still up over 100% in 2023.
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Where next for the Liontown share price??
Opinion remains divided in the broker community in respect to where the Liontown share price is heading to from here.
In the bull corner there is Bell Potter and Macquarie, which have the equivalent of buys ratings on its shares with price targets of $3.35 and $3.00, respectively.
Bell Potter believes the $2.50 per share takeover offer from Albemarle Corp (NYSE: ALB) earlier this year, which was rejected, undervalued the company. It also feels it spoke to the quality of its asset and the lack of growth opportunities in the sector. The broker commented:
The corporate interest in LTR from a high-profile US-based industry participant speaks to the quality of Kathleen Valley and the scarcity of growth opportunities in the sector. We view the value of ALB's proposal as reasonable, but not full; with additional value to be argued from LTR's de-risking of Kathleen Valley, downstream projects and complementary ESG strategy and location. We also believe LTR will ultimately be capable of realising this value in the absence of a corporate tie-up.
Over at Goldman Sachs, its analysts believe the Liontown share price is severaly overvalued at the current level. The broker's price target of $1.50 suggests potential downside of 45% from current levels.
Goldman is bearish on lithium prices and doesn't appear to believe the company's resource justifies its current valuation. Though, clearly with Albemarle offering $2.50 per share, it would be unlikely that Liontown's shares would fall as low as Goldman's price target.
Finally, analysts at Citi and UBS currently believe that the company's shares are trading at fair value now. They each have neutral ratings and $2.80 price targets on its shares.
