The Core Lithium Ltd (ASX: CXO) share price is trading 3.43% in the green today.
At the time of writing, Core Lithium shares are swapping hands at 90.5 cents apiece, sharply reversing a downtrend started on 28 June.
In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is pushing 2.34% higher today.
Core Lithium shares to rally again in FY23?
Core Lithium delivered outsized returns in the last financial year, helping the ASX lithium share surge 300% in the past 12 months.
The question is, can the company continue at this kind of pace, and what should investors keep an eye out for?
Lithium carbonate pricing continues to remain buoyant, trading at US$70,702 per tonne â in line with February 2022 highs.
It has held this range since 27 May after reversing out of a short-term downtrend, as seen below.
Demand continues to outweigh supply along the lithium supply chain. This could push the cost of batteries higher â or at least keep them relatively high â JP Morgan said in its 2022 annual energy paper in May.
This could bode well for the Core Lithium share price.
Moreover, Core Lithium is rated as a buy by 100% of the brokers covering the share, according to Refinitiv Eikon data.
The consensus price target from this list is $1 per share, suggesting a small amount of upside should the bull thesis be correct.
However, mining shares have traded down recently as investors begin to unwind the commodity trade, lithium being the exception.
If weakness from the broad sector were to transpose onto the company, this could be a downside risk.
As seen on the chart below, the Core Lithium share price has tracked the ASX 300 Metals and Mining Index with striking similarity in 2022.
The post What’s the outlook for the Core Lithium share price in FY23? appeared first on The Motley Fool Australia.
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More reading
- The best and worst ASX All Ords mining shares of FY22
- 3 ASX lithium shares that flew in FY22, and 1 that sank
- How did the Core Lithium share price gain 300% in the 2022 financial year?
- Here are the 3 most heavily traded ASX 200 shares on Tuesday
- Why is the Core Lithium share price powering down 6% today?
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. 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 Scott Phillips.
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