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The IGO Ltd (ASX: IGO) share price may be surging ahead lately, but one broker thinks it can go even higher.
The company’s shares are currently swapping hands at $12.76, down 1.85% today. However, that’s still a 17% since the close of trading on February 28. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.8% during that same time frame.
However, one broker believes there is still more to come from the nickel miner. Let’s take a look.
Price target lifts
Analysts at Citi have lifted the IGO share price target, a NAB report reveals. The broker has upgraded the company’s price target to $14. That suggests an upside of almost 10% on the current price.
The broker reportedly sees IGO making “hefty margins of 90%” in the first half of FY22.
Nickel prices surged 90% to hit all-time highs in global markets overnight amid supply concerns as a result of Russia’s invasion of Ukraine. Russia provides about 10% of the world’s nickel.
As Motley Fool Australia reported earlier, investors are fearing western sanctions against Russia could disrupt air and sea shipments of the commodity.
Citi predicts nickel prices to rally to US$30,000/tonne in quarter two of FY22, before moderating in quarter three.
IGO owns and operates the Nova nickel, copper, and cobalt mining operation in Western Australia.
Today, IGO updated the market with a copy of a presentation to the Euroz Hartleys Conference. The company stated it can gain leverage from the disruptive transition to clean energy. IGO highlighted its portfolio of “high-quality assets” with exposure to nickel, copper, cobalt, and lithium.
IGO share price snapshot
The IGO share price has soared nearly 100% in the past year and is up 11% year to date.
In the past month, the miner’s shares have gained 6%, while they have risen 17% in the past week.
For perspective, the benchmark ASX 200 index has returned around 4% over the past year.
The post Up 17% this month, why the IGO (ASX:IGO) share price can keep gaining: broker appeared first on The Motley Fool Australia.
Should you invest $1,000 in IGO right now?
Before you consider IGO, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IGO wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- The price of nickel is soaring and these ASX mining shares are cashing in
- Why IGO, Lake Resources, Talga, and Whitehaven Coal shares are charging higher
- ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded
- Why IDP, IGO, Sayona Mining, and Yancoal shares are storming higher
- ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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