ASX All Ords stock Liontown Resources Ltd (ASX: LTR) has been heavily sold in 2024 and is down more than 50% this year to date.
Shareholders have experienced a rough ride since trading resumed in January, when shares stood at $1.69 apiece.
They finished the session on Tuesday at 82 cents following this year's steep decline.
But fear not young Jedi. The force could be strong with this one. Leading brokers see huge upside for the lithium stock if things start to improve. Can it rebound? Let's find out.
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ASX All Ords share down hard in 2024
It's been a tumultuous year for the ASX All Ords stock. Both on the chart, and on the business front.
Most recently, the company released its first quarterly update since production kicked off at Kathleen Valley in Western Australia.
The miner reported output of over 28,000 dry metric tonnes (dmt) of spodumene concentrate, with an average grade of 5.2% lithium (Li2O) over an eight-week period.
Despite the company's enthusiasm, investors weren't as impressed. After nudging to around three-month highs of 92 cents apiece, the ASX All Ords stock has retreated to its current levels.
But it isn't all sad songs and broken hearts. Plenty of experts are still bullish on the stock.
Bell Potter has a speculative buy rating on Liontown shares, with a price target of $1.50. This implies an 83% upside potential over the next year if the stock performs as expected.
The broker cited Kathleen Valley's "strategic" nature, long lifespan, and secure position within a tier-one jurisdiction as reasons to stay optimistic.
In saying that , as with many speculative ASX All Ords stocks, the broker says that Liontown is best suited for investors with a high tolerance for risk.
Meanwhile, consensus rates the stock a hold, according to CommSec. This includes two buys, six holds, and five sell ratings on the stock.
What about fundamentals?
In its quarterly report, Liontown revealed the shipment of 10,831 dmt of spodumene concentrate, which has already reached an offtake customer. Revenue was realised after the quarter's end.
Additionally, Liontown has initiated a spot sales strategy for its uncontracted spodumene concentrate, achieving a reference price of US$802 per dmt for an upcoming shipment.
The company closed the quarter with a healthy cash balance of $263.1 million, providing a buffer as it continues scaling production.
CEO Tony Ottaviano celebrated the early milestones, stating, "Major milestones achieved this quarter included our first sale of spodumene concentrate, cementing Liontown's status as the world's newest major lithium producer."
Time will tell if Bell Potter is correct and if the stock will bounce back or not.
Foolish takeaway
This ASX All Ords stock has had a difficult year in 2024 and is down over 50%. But its fortunes could be set to change if one broker is correct.
Still, Liontown has to navigate a challenging lithium market, at a time when lithium demand is in question.
In the last 12 months, the stock has slipped more than 50% also.
