Citi says Australia's Liontown Resources could surpass consensus on cash balance; maintains TP

Liontown

16/03/2025 19:05

** Citi highlights lithium miner Liontown Resources' LTR.AX new capital allocation framework and intent to "screen for opportunities" amidst market conditions, despite high leverage to lithium prices

** Brokerage maintains a "neutral" rating with a target price unchanged at 60 Australian cents/share

** Citi estimates LTR's cash balance at the end of the current year to be around A$120 million to A$140 million ($76 million to $88 million), which is higher than the general consensus of A$100 million

** Recovery rate at LTR's processing plant has been improving each month, with an average of 64% in February and instances of +70%, which aligns with the Q3FY26 target - Citi

** Citi says LTR's proactive stance in looking for growth opportunities in the market, signaling potential prospects for expansion

** Two of 13 analysts rate the stock "buy", eight "hold" and three "sell"; their mean PT is A$0.79 – LSEG data

** Stock has gained 22.9% this year as of the last trade

($1 = 1.5823 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Lisa Shumaker)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))