The Liontown Resources Limited (ASX: LTR) share price is starting the week strongly.
In morning trade, the lithium developer's shares are up 4% to $1.70.
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Why is the Liontown share price pushing higher?
The Liontown share price is pushing higher on Monday despite there being no news out of the company.
However, it is worth noting that there are a number of lithium shares pushing higher today after investor sentiment in the industry rebounded following a tough week.
Here's a quick summary of some of the movers and shakers in the industry today:
- The Allkem Ltd (ASX: AKE) share price is up 3%
- The Core Lithium Ltd (ASX: CXO) share price is up 4.5%
- The Pilbara Minerals Ltd (ASX: PLS) share price is up 5.5%
Where next for Liontown's shares?
The good news for investors is that one leading broker believes the Liontown share price still has huge upside potential.
A recent note out of Bell Potter reveals that its analysts have a speculative buy rating and $2.87 price target on its shares. Based on the current Liontown share price, this implies potential upside of almost 70% over the next 12 months.
The broker commented:
LTR is fully funded to develop Kathleen Valley and has binding lithium offtake agreements in place with Ford, Tesla and LG Energy Solution covering around 90% of initial production. With construction underway, we expect LTR to award further development contracts with a focus building the asset's best in class ESG credentials. Studies into lithium refining are underway and could bring further strategic partnerships from major lithium groups. Optimisation of this downstream project will complement Kathleen Valley development news flow.
