Here’s what experts are predicting for the lithium sector in the new year.
The post What’s the outlook for ASX lithium shares in 2022? appeared first on The Motley Fool Australia. –
Here’s what experts are predicting for the ‘white gold’ metal and the companies that work to produce it in 2022.
What 2022 could bring for lithium prices
Many experts expect the price of lithium to remain high through next year.
As my Foolish colleague, James Mickleboro, recently reported, Macquarie Group Ltd (ASX: MQG) analysts are bullish on the commodity’s price. And not only for the new year, but for the 3 following years as well.
It believes producers will be kept busy by demand from electric vehicle manufactures.
That sentiment is echoed by S&P Global Platts Analytics. It predicts demand for lithium will likely see production nearly triple by 2025, meaning the coming years could see a major boom in the sector.
However, for the next 12 months, it expects a demand deficient of around 5,000 megatons of lithium carbonate equivalent.
Additionally, as The Motley Fool Australia reported yesterday, mergers and acquisition activity in the lithium space might be about to ramp up. Particularly, as Chinese companies vie to get a slice of the limited lithium pie.
So, which ASX lithium shares might be worth keeping an eye on in the new year?
ASX lithium stocks experts think could soar in 2022
Pilbara Minerals Ltd (ASX: PLS)
The former has placed a $3.70 price target on the lithium producer’s share price, while the latter has slapped it with a $2.05 target.
At the time of writing, the Pilbara Minerals share price is $3.21.
Allkem Ltd (ASX: AKE)
Alkem is another broker favourite. It’s the entity resulting from the recent merger of Ococobre and Galaxy Resources.
UBS is targeting $10.75 for the company’s shares, hitting it with a buy rating earlier this month.
Meanwhile, Macquarie has an outperform rating on the company and a price target of $13.60.
Right now, the Alkem share price is $10.45.
Sayona Mining Ltd (ASX: SYA)
Finally, Marcus Today has labelled Sayona Mining a “speculative buy”, stating it has potential.
Right now, investors can get their hands on the company’s stock for 13.5 cents apiece.
The post What’s the outlook for ASX lithium shares in 2022? appeared first on The Motley Fool Australia.
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