If you're looking to take advantage of recent weakness in the lithium industry to make some investments, then you might want to check out the three buy-rated ASX 200 lithium shares listed below.
Here's what analysts are saying about these lithium shares:
Allkem Ltd (ASX: AKE)
According to a note out of Goldman Sachs, its analysts have a buy rating and $13.20 price target on this ASX 200 lithium miner's shares. The broker has named Allkem as its top pick in the industry thanks to its attractive valuation and significant product growth potential. It commented:
We reiterate our view that IGO and AKE deserve to trade at a premium to peers (IGO's proportionally consolidated lithium reflecting exposure to the low cost/high quality Greenbushes mine and growth pipeline; AKE reflecting our expected >4x equity LCE production growth outlook to FY27E, the largest resource base vs. peers, and exposure to high margin/longer life brine assets, with a higher near-term multiple on more rapid carbonate price decline vs. spodumene), with these relative premiums partially reflected in the pricing analysis below.
IGO Ltd (ASX: IGO)
The same note out of Goldman Sachs reveals that its analysts also have a buy rating and $13.90 price target on this lithium share. As well as its valuation, the broker is attracted to the company due to its low costs. It said:
Greenbushes the lowest cost lithium asset in our coverage. Production growth more than offsets increasing strip ratio: The addition of CGP3 (under construction) and CGP4 (planned for 2027) will take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa (excluding tailings processing of ~0.3Mtpa), and are planned to be funded from existing Greenbushes debt facilities, combined with Greenbushes cash flows. We forecast LT production in the range of 1.8-2.0Mtpa on lower utilisation, in line with the Tianqi's outlook. While we also expect a pick-up in costs on considerable increases in waste movements over the next 5 years and forecast an average strip ratio of ~8x over the next 5 years (vs. LOM of 4.4x), despite this unit costs remain low at US$200-250/t and below peers ~US$350/t from FY25-30E.
Liontown Resources Ltd (ASX: LTR)
A final ASX 200 lithium share that has been named as a buy is Liontown. Analysts at Bell Potter currently have a buy rating and $3.35 price target on its shares. They believe the recent takeover offer from Albemarle highlights the company's value. It said:
The corporate interest in LTR from a high-profile US-based industry participant speaks to the quality of Kathleen Valley and the scarcity of growth opportunities in the sector. We view the value of ALB's proposal as reasonable, but not full; with additional value to be argued from LTR's de-risking of Kathleen Valley, downstream projects and complementary ESG strategy and location. We also believe LTR will ultimately be capable of realising this value in the absence of a corporate tie-up.
