The Liontown Resources Ltd (ASX: LTR) share price was in fine form in the last financial year.
As we covered here earlier, the lithium miner's shares were the best performers on the ASX 200 index during the 12 months.
Over the period, Liontown's shares rose a mammoth 168% gain.
But that was then and this is now. Will the new financial year be just as fruitful for this ASX lithium share? Let's find out.
What's the outlook Liontown shares in FY24?
Whether Liontown's shares outperform again in the new financial year will likely depend on where the lithium price heads over the next 12 months.
With some analysts predicting major declines, there could be significant pressure on the sell side if prices crumble. Conversely, if prices remain higher than expected, this could bode well for its shares in FY 2024.
It is also worth remembering that lithium giant Albemarle Corp (NYSE: ALB) made a takeover approach for Liontown earlier this year. While that $2.50 per share approach was swiftly rejected, there is potential for Albemarle to return with an improved offer over the next 12 months.
Especially based on what one leading broker said about the approach. Bell Potter described it as fair but not full and highlighted that it demonstrates the quality and scarcity of the Kathleen Valley lithium project. It said:
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.
It is also worth noting that Bell Potter currently has a speculative buy rating and a $3.35 price target on Liontown's shares. This implies that they could rise by 17% over the next 12 months.
All in all, it certainly looks likely to be an interesting year for Liontown and its shares.
