Lithium prices are on the rise, creating a big opportunity for investors looking to capitalize on the surge in demand for lithium stocks. Analysts at UBS, Goldman Sachs, and Morgan Stanley have all revised their supply estimates for 2024, indicating a potential shortage in the market. This has led to a spike in prices, with Bank of America now predicting an average of $14,000 per metric ton this year, up from their previous estimate of $10,000.
One of the top lithium stocks to buy now is Piedmont Lithium (PLL). Despite a recent downturn in their stock price, the company just received approval for a new lithium project in North Carolina, positioning them as a key player in the North American lithium market. With a market perform rating from BMO Capital and a price target of $20 a share, Piedmont Lithium is a solid investment opportunity.
Another top pick is Sociedad Quimica y Minera (SQM), which currently yields about 11%. Despite recent earnings declines, SQM is trading at the lower end of its range and has bounced back multiple times, indicating strong support at current levels. Analysts at Jefferies have upgraded SQM to a buy rating with a price target of $62.80, citing the company’s competitive advantage and future growth prospects.
For investors looking for broader exposure to the lithium market, the Amplify Lithium & Battery Technology ETF (BATT) is another option to consider. With holdings in global companies involved in lithium battery technology, including Tesla and Albemarle, the BATT ETF provides a diversified approach to investing in the growing lithium market. With the potential for significant gains as lithium prices continue to rise, the BATT ETF is a promising option for investors looking to capitalize on the lithium boom.
