One of the hottest stocks on the Australian share market this year has been Azure Minerals Ltd (ASX: AZS).
Since the start of the year, the ASX lithium share has risen over 1,000%.
To put that into context, this would have turned a $10,000 investment into $110,000.
But if you thought the gains were over, then think again! That's because one leading broker has just tipped this ASX lithium share to almost double from current levels.
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What is being said about this hot ASX lithium share?
According to a note out of Bell Potter, its analysts have retained their speculative buy rating and increased their price target by 72% to $5.15 (from $3).
Based on the current Azure Minerals share price of $2.67, this implies a potential upside of 93% over the next 12 months.
The broker made the move in response to recent updates from the 60% owned Andover Lithium Project in Western Australia.
Bell Potter feels that these updates point to the project being comparable to the Wodgina Lithium Project owned by Mineral Resources Ltd (ASX: MIN) and Kathleen Valley owned by Liontown Resources Ltd (ASX: LTR). It explains:
With this update we increase our valuation 71.7% to $5.15/sh, and we maintain our Speculative Buy recommendation in accordance with our ratings structure, given our forecast TSR of 93.6%. Lithium Mineral Resources of +200Mt scale support Australia's large market capitalisation lithium producers and project developers. The Exploration Target highlights Andover's potential to host another Western Australian Tier-1 lithium project (+200Mt scale) like Wodgina (MIN, Buy, Target Price $90.0/sh) and Kathleen Valley (LTR, Spec. Buy, Val$3.35/sh).
AZS offers exposure to a very-high potential WA lithium exploration project, in the early stages of discovery. We think it's undervalued given the clear upside that Andover could support a globally significant Tier-1 lithium mining operation, in the Tier-1 mining jurisdiction of Western Australia.
All in all, this could be an ASX lithium share to keep a very close eye on.
