Are you looking for exposure to lithium? Well, if you are, then it could be worth considering Liontown Ltd (ASX: LTR) shares.
That's the view of analysts at Bell Potter, who remain bullish on the lithium miner following its half-year results release this week.
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What is the broker saying?
Bell Potter notes that Liontown delivered a half-year result that was largely in line with expectations.
But the real highlight was its balance sheet reset, which it believes is a major positive. The broker explains:
LTR reported revenue of $208m, underlying EBITDA of -$8m (BP est. -$25m) and underlying NPAT of -$89m (BP est. -$98m). Statutory net loss after tax of -$184m includes a -$104m non-recurring, non-cash fair value movement on the LGES Convertible Note derivative. The company's balance sheet is strong following the LGES note conversion. At 31 December 2025, LTR had cash of $390m (previously reported). We estimate pro forma (post LG note conversion) net cash (excluding leases) of $32m.
FY26 guidance was reiterated, tracking to a stronger 2H with a higher portion of clean underground ore that will boost plant recoveries (1H FY26 61%) and production volumes (1H FY26 190kt), and materially stronger lithium market prices (spot SC6 US$2,220/t; 1H FY26 average US$955/t).
In addition, Bell Potter highlights that Liontown is looking at a brownfield expansion, with results from a study due to be released in the middle of the year. It adds:
The recent strength in lithium markets has motivated the company to revisit Kathleen Valley expansion options, potentially taking mining and plant throughput to 4Mtpa (from 2.8Mtpa) through de-bottlenecking and incremental capacity additions. A study is expected to be completed in mid-2026 and FID is subject to sustained lithium market strength and Board approvals. Current lithium market strength supports the expansion; at this stage we expect a positive decision.
Should you buy Liontown shares?
According to the note, Bell Potter has retained its buy rating and $2.42 price target on Liontown shares.
Based on its current share price of $1.62, this implies potential upside of 49% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
LTR is now in a net cash position. Over FY26-27, LTR will continue to ramp up and de-risk Kathleen Valley. With current lithium price strength, LTR can rapidly generate cash to support incremental production expansions and shareholder returns. Kathleen Valley is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction. LTR has offtake contracts with top-tier EV and battery OEMs. The company has a strong balance sheet with long tenor debt finance.
