Alpha Recommendation: Buy – Liontown (LTR)

*** GENERAL AVICE ONLY***

Trade Date: 30/01/2024

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: $1.00

Target Price: $1.20 (+20%)

Stop Loss: 87c (-13%) Use a 10% trailing stop

Rationale:

The recent fall in all Lithium names has started to find support with names such as MIN and PLS bouncing off lows. We should see that support trickle down to the next names in line and LTR is top of that list. Technically LTR has just traded over recent resistance at 96c, so this gives us an opportunity to buy LTR at levels where the downside risk while still present, is easily managed. So buy LTR at current levels (around $1) and use a 10% trailing stop on the position. This means we will raise the stop price on the LTR trade as the price rises. Target price on the trade is a gap close around the $1.20 level