Global lithium giants seek lithium takeover targets
Potential trading and investing ideas; with a look at lithium stocks in the best of index...
- Australian lithium miner Liontown Resources ($Liontown Resources Ltd(LTR.AU)$) shares jumped 9% on Monday, Sept 4, taking its YTD gain to 99%. Today's 9% jump came after Liontown received a new A$6.6 billion ($4.3 billion) takeover offer from the world's top lithium producer metal, Albemarle Corp ($Albemarle(ALB.US)$).
As such lithium companies are again cast into the spotlight. Although the lithium carbonate price is down 61% this year, causing a lot of lithium company's shares to produce lackluster returns, as China's economy has been in contraction phase, many think lithium demand will pick up, from battery markers and global carmakers, with China expected to drive the bulk of EVs demand growth for the next 10 years, as the world transitions away from fossil fuel cars.
- So it's worth reflecting on lithium producers, as many are deemed undervalued when compared to consensus price targets.
- Below are some lithium stocks to watch that make up the Best of Lithium Index (in the Solactive Global Lithium Index). However, the major driver of returns will be a change in the lithium price, once China's economy returns to the growth phase.
- Below are the aforementioned lithium companies in the best of lithium index, showing their returns year to date and expected returns-based consensus price targets, showing Vulcan Energy ($Vulcan Energy Resources Ltd(VUL.AU)$), Standard Lithium ($Standard Lithium(SLI.US)$), and Piedmont Lithium ($Piedmont Lithium(PLL.US)$) have the greatest consensus expectations for share price growth.
- Also keep your eyes on lithium ETFs including the Lithium and Battery Tech ETF ($Global X Lithium & Battery Tech ETF(LIT.US)$) that tracks the Solactive Global Lithium Index.
Lithium stocks in the spotlight
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Author:
Jessica Amir | Moomoo Official Market Strategist
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more