These ASX lithium shares could rise 30%+: analysts

These lithium shares have been tipped to smash the market.

| More on:
A young man wearing a black and white striped t-shirt looks surprised.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A number of ASX lithium shares have been generating big returns for their shareholders over the last 12 months.

The good news is that according to analysts, there are still plenty of potential gains to come.

For example, analysts say the three ASX lithium shares listed below could have 30% upside or more from current levels. Here’s what you need to know:

Allkem Ltd (ASX: AKE)

The first ASX lithium share that could be a buy with big potential returns is Allkem. It is the lithium miner behind the Mt Cattlin and Olaroz operations. Bell Potter is a fan of the company. It notes that “AKE is our preferred lithium exposure noting it is a top 5 global producer and its slated merger with Livent is expected to bring US$125 million per annum in synergies and expedite expansions.”

Bell Potter has a buy rating and $18.90 price target on its shares. This suggests potential upside of 30% for investors over the next 12 months.

Azure Minerals Ltd (ASX: AZS)

Bell Potter is also feeling very bullish on this lithium explorer due to the huge potential of the 60%-owned Andover Lithium project. Its analysts believe that the project is comparable to the Wodgina Lithium Project owned by Mineral Resources Ltd (ASX: MIN) and Kathleen Valley owned by Liontown Resources Ltd (ASX: LTR).

The broker has a speculative buy rating and $5.15 price target on its shares. This implies approximately 100% upside from current levels.

Pilbara Minerals Ltd (ASX: PLS)

The team at Macquarie remains very positive on this ASX lithium share and continues to rate it as its top pick in the industry. The broker was impressed with the company’s recent drilling results which have given the Pilgangoora Project mineral resource estimate a huge boost.

So much so, earlier this week, the broker retained its outperform rating with an improved price target of $7.50. This implies almost 40% upside for investors from current levels.

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Materials Shares

‘Amongst the best in the world’: Why the Allkem share price is charging higher today

Allkem may be sitting atop another world class asset.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Materials Shares

Own Allkem shares? Here’s what to expect from its FY23 results

Is this lithium giant going to deliver the goods in FY 2023?

Read more »

Pilbara Minerals engineer with hard hat looks through binoculars at work site or mine as two workers look on
Materials Shares

Which ASX lithium shares are cashed-up millennials buying?

Millionaire millennials seem to favour two of the smaller ASX lithium players.

Read more »

A woman is left blank after being asked a question, she doesn't know the answer.
Share Market News

Are millionaire investors going cold on Core Lithium shares?

The lithium miner hit a new 52-week low this morning before rebounding.

Read more »

Miner looking at a tablet.
Materials Shares

Renascor Resources share price tumbles again despite licensing deal

Renascor Resources has announced a licensing agreement for its downstream processing.

Read more »

a bricklayer peers over the top of a brick wall he is laying with a level measuring tool on top and looks critically at the work he is carrying out.
Earnings Results

Boral share price bolts 7% higher on ‘clear improvement’ in FY23

Boral is building its way back to its former glory under the guidance of its new leader.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Materials Shares

Why is the Rio Tinto share price tumbling today?

What's going on with this miner's shares on Thursday?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Share Fallers

Renascor Resources share price crashes 20% despite positive study results

Renascor Resources has announced the study results of its proposed South Australian graphite mining and processing project.

Read more »