The Sayona Mining share price just keeps on falling. Is it a buy yet?

This ASX lithium share has reset its 52-week low yet again on Wednesday.

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The Sayona Mining Ltd (ASX: SYA) share price reached a new 52-week low today at 8.4 cents.

The lithium and graphite miner just keeps digging itself further into the ground, with the stock down 63% over the past 12 months.

Battery materials, as a category of industry, obviously have a bright future. The whole world is decarbonising and the green energy era is only at the very beginning of its evolution.

The brand new business of electric vehicle manufacturing will clearly play a big part in it. So, investor interest in ASX lithium shares is entirely understandable.

But at what point do you buy a stock like Sayona Mining after such a terrible year?

Broker tipping 140% upside for Sayona Mining share price

At the end of August, top broker Macquarie slapped an outperform rating on Sayona Mining with a 12-month share price target of 20 cents.

That implies a 140% potential upside from today's new 52-week low.

But you'd have to be a brave investor to buy Sayona shares, given their ongoing tumble in 2023.

This week, Sayona entered the top 10 most shorted shares list with a short interest of 7.5%.

That means a bunch of professional traders are expecting the ASX lithium share to go even lower.

As always, the Fool recommends undertaking a fundamental analysis of any company you are considering investing in.

It's also worth remembering that ASX small-cap shares like Sayona Mining are known for greater share price volatility, so you need a strong stomach to be able to invest in these types of shares.

Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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