Broker now sees almost 100% upside

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The Lake NL Resources (ASX: LKE) The stock price is deep in the red on Thursday.

In morning trading, shares of the lithium developer were down 9% at $1.37.

Lake stock price recovered a bit this afternoon but remains down 5% at $1.43 currently.

Why is the Lake stock price falling?

Lake stock price weakness was driven by another market selloff today. This follows a disappointing night of trading on Wall Street, which saw the Dow Jones fall 2.3% and the Nasdaq fall 4.7%.

Lake isn’t the only lithium share to fall today. At the time of writing, the Liontown Resources Limited (ASX: LTR) the stock price is down 4% and the Sayona Mining Ltd (ASX: SYA) stock price is down 7%.

Today’s drop means Lake’s stock price has fallen almost 40% in the space of a month. However, it is still up almost 600% since this time last year despite this recent weakness.

Is this a buying opportunity?

Based on a Bell Potter note from last month, its analysts will likely see the decline in Lake stock price as a buying opportunity.

Its analysts currently have a speculative buy rating and a price target of $2.83. This implies nearly 100% upside potential over the next 12 months.