BUY - Liontown (LTR)
*** GENERAL AVICE ONLY***
Trade Date: 08/12/2023
Description: Liontown Resources (LTR) is an exploration company and tier 1 Battery Minerals producer, focused on development and supply as required by the rapidly growing Electric Vehicle and Energy Storage industries at its two major Lithium deposits in Western Australia.
Recommendation
Buy Liontown
Entry price: $1.33
Target Price: $1.61 (+21%)
Stop Loss: 1.195 (-10%)
Rationale:
Liontown Resources (LTR) is an exploration company and tier 1 Battery Minerals producer, focussed on development and supply at its two major Lithium deposits in Western Australia. Liontown Resources LTR has had a volatile year. It jumped to $3 on a takeover by Albermarle back in April. This takeover was then blocked by Gina Rinehart and the downtrend in all lithium stocks sent LTR down to as low as $1.21 earlier this week. There has been some encouraging price action in all the larger Lithium producers, add the fact that there has been a limit up move in Lithium futures/spot pricing shows that there may be a reversal in the trend of Lithium. This means there is a good opportunity to buy some LTR here, where the downside risk is easy to manage. There has been good support around $1.20 in the past, so set stops just below that area and look for LTR price to recover to the $1.60 area
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.