Lithium stocks have roared back to life in 2025.
Shares in Pilbara Minerals Ltd (ASX: PLS) have ballooned by 93% since the start of the year, trading near 52-week highs at the time of writing.
Its ASX 200 peer Liontown Ltd (ASX: LTR) has performed even better, soaring by 168% since early January.
But in recent weeks, an emerging explorer has outshone both of these ASX 200 mining heavyweights.
More specifically, Wildcat Resources Ltd (ASX: WC8) has entered the spotlight following significant progress at its Bolt Cutter lithium discovery in Western Australia.
And shares in this ASX lithium stock have surged by 43% in just the past month, fuelled by a string of promising exploration results.
According to investment firm Euroz Hartleys Group Limited (ASX: EZL), the rally may still have a long way to run.
Let's take a closer look at what is driving the broker's bullish outlook for this ASX lithium stock.
Established ASX lithium stock
Wildcat is quickly cementing its place as a significant player in the Australian lithium space.
Its flagship Tabba Tabba project lies roughly 50 kilometres from Pilbara Minerals' globally renowned Pilgangoora mine.
And since acquiring the project in 2023, Wildcat has defined a 74 million tonne resource grading 1% lithium (Li2O).
A recent pre-feasibility study (PFS) for Tabba Tabba outlined an initial 17-year mine life and projected $3.2 billion in free cash flow after tax.
However, investor attention seems to have shifted to its nearby Bolt Cutter project in recent weeks, located just 10 kilometres from Tabba Tabba.
What happened?
This week, Wildcat unveiled a batch of encouraging lithium intercepts from exploration drilling at Bolt Cutter.
Notable hits included 9m at 1.84% lithium from 128m depth, and 7m at 1.03% lithium from 49m.
Overall, 17 of the 20 holes from this batch of drilling returned significant intercepts.
As a result, the mineralised strike at Bolt Cutter Central has now expanded to 1.4 kilometres in length, up from 900 metres just last month.
In addition, the lithium-hosting pegmatites remain open in most directions.
And Euroz Hartleys appears buoyant on how the discovery is shaping up.
Euroz Hartleys viewpoint
Commenting on the impact of the most recent drill results at Bolt Cutter, the broker noted:
The system is interpreted to be in a flat lying and stacked pegmatite system, on our early stage estimates we see the potential for Bolt Cutter to host mineralisation in the order of ~15-20mt at ~1% Li2O, and see it as a potential satellite operation to the flag ship Tabba Tabba project.
More broadly, Euroz Hartleys has identified Wildcat as the "clear standout" amongst Australian lithium developers.
It pointed to the group's strong $51 million cash position and simultaneous progress at both Bolt Cutter and Tabba Tabba.
The broker believes the market has likely underestimated the significance of Wildcat's recent acquisition of neighbouring tenements.
It expects these moves to be reflected in a definitive feasibility study, projected for completion in 2026.
Share price outlook for the ASX lithium stock
Euroz Hartleys has issued a speculative buy rating on Wildcat shares, setting a target price of $0.51 apiece.
This implies 59% upside potential from $0.32 per share at the time of writing.
