Can Lake Resources shares reach 20 cents by Christmas?

Can this lithium share rebound in the coming weeks?

| More on:
a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.

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

Lake Resources N.L. (ASX: LKE) shares had a subdued finish to the week.

The lithium developer's shares just closed flat at 16.5 cents.

This means that its shares are now down approximately 80% since the start of the year.

Can Lake Resources shares rebound in the coming weeks and finish the year on a high? Let's take a look and find out.

Could Lake Resources shares hit 20 cents by Christmas?

Predicting share price movements is very difficult over a 12-month period and almost impossible over a period of five weeks. But let's still see if 20 cents by Christmas is possible for Lake Resources shares.

Well, firstly, there isn't a lot of broker coverage on the lithium developer. So, we don't have a consensus to base our assumptions on. But there is one broker that we can at least rely on – Bell Potter.

Its analysts currently have a speculative buy rating and 36 cents price target on the company's shares. This implies that they could more than double in value between now and next year.

It most recently commented:

LKE provides value leverage to medium term lithium markets and the success of a pre-commercial emerging lithium processing technology: direct lithium extraction (DLE) via ion exchange. LKE's Kachi lithium project in Argentina is strategic in terms of scale and potential to disrupt traditional brine lithium production methods. The technology brings ESG benefits including less land disturbance and water consumption. Key near term value catalysts include a DFS by the end of 2023, then progressing through FEED and financing in 2024 and taking FID in early 2025.

To get to 20 cents, Lake Resources shares would need to rise 21%. The good news is that it isn't a stranger to such big gains (or declines). For example, last month it jumped 11% in one day. A month earlier, as covered here, its shares were down 13% in three days.

However, to get to our target, it may need the stars to align. This would be some positive news flow, a rebound in lithium prices, the derisking of its Kachi project, and improving sentiment in the battery materials industry.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Guess which ASX mining stock is up 8% today and could rocket a further 200%

Bell Potter has good things to say about this mining stock which released an announcement today.

Read more »

Broker working with share prices on computers.
Materials Shares

Timing the dip: How far can these ASX materials shares fall?

When could be the right time to buy low on this battered sector?

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Are BHP shares a bargain buy?

Are analysts bullish on this beaten down mining stock? Let's find out.

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

This ASX mining stock is jumping 11% on big news

This miner is having a good session on Thursday. Let's find out why.

Read more »

Lion leaping with mouth open, symbolising a rising Liontown share price.
Materials Shares

Why is the Liontown share price leaping 9% on Tuesday?

This ASX lithium share is the fastest mover of the ASX 200 today.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 lithium stock sinking 17% today?

What's going on with this lithium stock today? Let's find out.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Materials Shares

$10k invested in Pilbara Minerals shares 5 years ago is now worth…

Let's see if this lithium miner delivered the goods for investors.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »