If you're wanting to invest in ASX lithium shares in order to gain exposure to the decarbonisation megatrend, I have good news for you.
Despite some incredible gains being recorded in the industry this year, brokers don't appear to believe that it is too late to invest.
Listed below are five ASX lithium shares that have been rated as buys recently:
Allkem Ltd (ASX: AKE)
The first ASX lithium share that brokers rate highly is Allkem. It is one of the world's largest lithium miners and the result of the merger between Galaxy Resources and Orocobre. Bell Potter is a big fan of the company and currently has a buy rating and $20.04 price target on its shares. This compares to the latest Allkem share price of $14.15.
Liontown Resources Limited (ASX: LTR)
Another ASX lithium share that brokers rate as a buy is Liontown Resources. Macquarie is very bullish on the owner of the Kathleen Valley and Buldania projects in Western Australia. So much so, it has an outperform rating and $2.50 price target on its shares. This compares favourably to the latest Liontown share price of $1.83.
Mineral Resources Limited (ASX: MIN)
This mining and mining services company could be a buy due to its exposure to lithium. That's the view of analysts at Citi, which expect Mineral Resources' lithium operations to generate the vast majority of its earnings in FY 2023. The broker also sees positives from the proposed restructure of its lithium assets. Citi currently has a buy rating and $86.00 price target, which is meaningfully higher than the current Mineral Resources share price of $72.81.
Red Dirt Metals Ltd (ASX: RDT)
The team at Bell Potter has named this up and comer as a lithium share to buy this morning. According to the note, the broker has put a speculative buy rating and 90 cents price target on its shares. Bell Potter notes that "RDT is leveraged to the electrification thematic, growing lithium market demand and geological discovery through two WA lithium projects." The Red Dirt Metals share price is fetching 52 cents today.
Pilbara Minerals Ltd (ASX: PLS)
This lithium giant still has room to climb higher according to analysts at Macquarie. In response to another strong digital auction result earlier this week, the broker has retained its outperform rating and $5.70 price target on the company's shares. This compares to the latest Pilbara Minerals share price of $5.00.
