Lake Resources N.L. (ASX: LKE) shares had a subdued finish to the week.
The lithium developer's shares just closed flat at 16.5 cents.
This means that its shares are now down approximately 80% since the start of the year.
Can Lake Resources shares rebound in the coming weeks and finish the year on a high? Let's take a look and find out.
Could Lake Resources shares hit 20 cents by Christmas?
Predicting share price movements is very difficult over a 12-month period and almost impossible over a period of five weeks. But let's still see if 20 cents by Christmas is possible for Lake Resources shares.
Well, firstly, there isn't a lot of broker coverage on the lithium developer. So, we don't have a consensus to base our assumptions on. But there is one broker that we can at least rely on – Bell Potter.
Its analysts currently have a speculative buy rating and 36 cents price target on the company's shares. This implies that they could more than double in value between now and next year.
It most recently commented:
LKE provides value leverage to medium term lithium markets and the success of a pre-commercial emerging lithium processing technology: direct lithium extraction (DLE) via ion exchange. LKE's Kachi lithium project in Argentina is strategic in terms of scale and potential to disrupt traditional brine lithium production methods. The technology brings ESG benefits including less land disturbance and water consumption. Key near term value catalysts include a DFS by the end of 2023, then progressing through FEED and financing in 2024 and taking FID in early 2025.
To get to 20 cents, Lake Resources shares would need to rise 21%. The good news is that it isn't a stranger to such big gains (or declines). For example, last month it jumped 11% in one day. A month earlier, as covered here, its shares were down 13% in three days.
However, to get to our target, it may need the stars to align. This would be some positive news flow, a rebound in lithium prices, the derisking of its Kachi project, and improving sentiment in the battery materials industry.