It's time to buy ASX lithium shares!
That's according to top broker Macquarie, which has slapped an outperform rating on 16 stocks.
Let's review.
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Why buy ASX lithium shares today?
Lithium stocks have fallen over the past year alongside declining lithium prices.
In The Australian this week, Macquarie said today's weaker prices for lithium stocks have created a buying opportunity and now is the time to snap them up for long-term investment.
The broker said:
We believe this is a buying opportunity for investors, especially the ones who look past short-term volatilities, to increase their exposure to a critical mineral at an attractive price level.
Despite a softer market sentiment, we see value in lithium developers underpinned by resource quality and/or favourable jurisdictions.
The short-term market trough creates an opportunity for strategic investors which could unlock value through business consolidation or offtake agreements.
The 16 stocks to buy
Macquarie says its favourite lithium stock today is Pilbara Minerals Ltd (ASX: PLS).
The Pilbara Minerals share price closed on Friday at $4.30, down 5.7% over the past 12 months.
The other 15 lithium stocks earning an outperform rating from Macquarie are as follows:
- Argosy Minerals Limited (ASX: AGY) shares (down 62% in 12 months)
- Core Lithium Ltd (ASX: CXO) shares (down 62% in 12 months)
- Sayona Mining Ltd (ASX: SYA) shares (down 61% in 12 months)
- Galan Lithium Ltd (ASX: GLN) shares (down 45% in 12 months)
- Global Lithium Resources Ltd (ASX: GL1) shares (down 38% in 12 months)
- Piedmont Lithium Inc (ASX: PLL) shares (down 26% in 12 months)
- Atlantic Lithium Ltd (ASX: A11) shares (down 26% in 12 months)
- Allkem Ltd (ASX: AKE) shares (down 15% in 12 months)
- Iluka Resources Limited (ASX: ILU) shares (down 15% in 12 months)
- Leo Lithium Ltd (ASX: LLL) shares (down 10% in 12 months)
- Lynas Rare Earths Ltd (ASX: LYC) shares (down 10% in 12 months)
- IGO Ltd (ASX: IGO) shares (down 8% in 12 months)
- Patriot Battery Metals Inc. CDI (ASX: PMT) shares (down 2% in 12 months)
- Mineral Resources Ltd (ASX: MIN) shares (up 3% in 12 months)
- Meteoric Resources NL (ASX: MEI) shares (up 2,150% in 12 months)
What did the broker say about these ASX shares?
Macquarie says Piedmont Lithium shares have a potential upside of more than 200% from today's price level.
Macquarie says Pilbara Minerals, Allkem, and Mineral Resources offer 100% to 160% upside.
It notes that Allkem offers "unique exposure to both lithium brine in South America and spodumene production in Australia".
Several other brokers also say Allkem shares are a buy right now. The Allkem share price closed on Friday at $11.76, up 2.1% for the day.
Macquarie said Patriot Battery Metals presents "the greatest upside on exploration over the near term", and that Global Lithium Resources "also offers great near-term exploration upside …".
