The Allkem Ltd (ASX: AKE) share price is having a strong day on Wednesday.
In afternoon trade, the lithium minerâs shares are up over 6% to $14.00.
This leaves the Allkem share price trading within touching distance of its record high of $14.38.
Why is the Allkem share price surging higher?
Investors have been bidding the Allkem share price higher today for a few reasons.
One is the strong night of trade that lithium miners had on Wall Street. This saw the likes of Livent Corp and Sociedad Quimica y Minera de Chile record gains of over 5%.
Also giving Allkem’s shares a boost has been a broker note out of Macquarie Group Ltd (ASX: MQG) this week.
That note saw the broker retain its outperform rating and lift its price target to a lofty $21.00. This suggests that Alkemâs shares could still rise 50% despite trading close to record highs.
Macquarie made the move on the belief that lithium prices will remain stronger for longer due to a growing demand and a supply shortfall.
This has led to the broker bumping its earnings estimates materially. So much so, Allkem’s shares trade at only 10x FY 2023 earnings according to Macquarieâs estimates.
The post Why is the Allkem share price charging 6% higher? appeared first on The Motley Fool Australia.
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More reading
- Here are the top 10 ASX 200 shares today
- Why is the Allkem share price acing it on Tuesday?
- Leading brokers name 3 ASX shares to buy today
- Why these ASX lithium shares are outperforming the market today
- Could ASX battery minerals shares be in for a boost next month?
Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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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