The IGO Ltd (ASX: IGO) share price has continued its disappointing run on Thursday.
So much so, the battery materials producer's shares have just dropped 4% to a 52-week low of $11.56.
This latest decline means that IGO's shares are down over 20% since this time last month.
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Why is the IGO share price at a 52-week low?
Investors have been selling IGO and other battery materials shares in recent weeks after lithium prices fell sharply.
Unfortunately, the team at Citi doesn't believe there's any relief in sight for companies like IGO.
A note this week reveals that its analysts have warned that lithium prices could fall a further 20% from current levels.
It is partly for this reason that the broker currently has a neutral rating on its shares.
One small positive, though, is that this recent lithium price weakness could benefit IGO in the long run. That's because the broker suspects that the weak prices could lead to a reduction in project developments and ultimately medium-term supply.
This could mean that when electric vehicle demand grows in the coming years, it will start to put pressure on the supply side of the equation.
Should you buy the dip?
One broker that sees huge upside potential in the IGO share price is lithium bull Macquarie.
Its analysts recently put an outperform rating and $18 price target on its shares. This implies over 50% upside from current levels over the next 12 months.
In addition, the broker is forecasting dividends per share of 35 cents in FY 2024 and 70 cents in FY 2025. This implies dividend yields of 3% and 6%, respectively.
