With lithium prices rebounding to their highest levels since December last week, some investors appear to believe that the worst could now be over. This led to a number of ASX lithium shares ending last week with strong gains.
The good news is that the gains may not be over for the ASX lithium shares listed below.
They have been named as buys by analysts and tipped to rise strongly from current levels.
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Arcadium Lithium (ASX: LTM)
The team at Macquarie thinks that this lithium giant's shares are great value at the current level.
Last week, the broker retained its outperform rating with an $11.00 price target. This implies potential upside of almost 30% for investors over the next 12 months.
Macquarie sees potential for its shares to re-rate to higher multiples over the medium term.
Delta Lithium Ltd (ASX: DLI)
Another ASX lithium share that has been named as a buy with major upside potential is Delta Lithium. It is focused on advancing the Mt Ida Lithium Project towards production and explorating the highly prospective Yinnetharra Lithium Project.
Bell Potter is a fan of the company and has a speculative buy rating and 75 price target on its shares. This suggests that its shares could more than double in value over the next 12 months.
Liontown Resources Ltd (ASX: LTR)
Bell Potter also believes that lithium developer Liontown could be a buy. Its analysts have a speculative buy rating and $1.60 price target on its shares. This implies that upside of approximately 25% is possible for investors.
The broker believes Albemarle's failed takeover bid demonstrates the quality of its Kathleen Valley operation. It said:
LTR remains our preferred lithium developer. We expect production will ramp-up as lithium prices and market sentiment improve. Albemarle's 2023 bid (subsequently withdrawn) highlighted Kathleen Valley's highly strategic nature in terms of its stage of development, long mine life and location.
