** Citi flags caution on Liontown Resources , driven by updated FY28-30 plans & increased capex, with costs for FY26 to be higher than 2H25

** Brokerage says lithium producer's higher-than-expected A$50 mln ($32.86 mln) capex in 2H pulls forward balance sheet concerns

** Says LTR needs extra liquidity by FY26 due to current pricing, despite an option to draw an additional A$100 mln ($65.72 mln) convertible terms under its partnership with LG Energy Solution (LGES)

** Co secured $250 mln convertible note from LGES in July, extending their lithium supply deal by 10 years & offering extra funding

** Recommends "sell" rating at PT A$0.75 per share, despite outperforming its peers by 10%-20% QTD due to valuation concerns

** 2 of 13 analysts rate the stock "buy", 6 "hold" and 5 "sell"; their median PT is A$0.80 — LSEG compiled data

** Shares down ~49% YTD as of the last close

($1 = 1.5216 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com))