The lithium industry has been having a very tough time of late.
While this is disappointing, it could have created a buying opportunity according to some analysts.
For example, listed below are four ASX lithium shares that have recently been rated as buys with material upside potential:
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Delta Lithium Ltd (ASX: DLI)
The team at Bell Potter believe that investors should be buying this small-cap ASX lithium share. Its analysts have just retained their speculative buy rating on its shares with a reduced price target of 85 cents. This suggests that its shares could rise approximately 85% over the next 12 months. It notes that Delta has "attracted strategic investment from several notable strategic investors."
Global Lithium Resources Ltd (ASX: GL1)
Analysts at Shaw and Partners continue to see significant value on offer with this ASX lithium share. A note from last week reveals that its analysts have retained their speculative buy rating and $3.20 price target on its shares. This offers over 150% upside from current levels. Global Lithium is the owner of the Manna Lithium Project.
Liontown Resources Ltd (ASX: LTR)
Bell Potter also believes that lithium developer Liontown Resources could be an ASX lithium share to buy. Its analysts recently reaffirmed their speculative buy rating and $2.75 price target on its shares. It highlights that Liontown "is now fully funded to complete the development of Kathleen Valley and is on track to ramp-up spodumene concentrate production from mid-2024." Bell Potter's price target offers a 71% upside.
Pilbara Minerals Ltd (ASX: PLS)
Macquarie may have finally admitted defeat with its bullish lithium price forecasts, but it still sees value in this lithium giant. Last week, the broker retained its outperform rating on its shares with a $4.40 price target. This represents a potential upside of 12% for investors.
