Why is the Core Lithium share price cruising 5% higher today?

The Core Lithium Ltd (ASX: CXO) share price is taking off on Monday despite the company’s silence.

The stock is trading at $1.355 right now, 5.45% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.22% at the time of writing.

So, what might be boosting the ASX lithium favourite higher today? Let’s take a look.

What’s driving the Core Lithium share price higher?

The Core Lithium share price is putting on a strong performance on Monday. Indeed, it’s currently one of its home sector’s top performers.

The S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 1.75% at the time of writing. That makes it Monday’s second best performing ASX 200 sector, coming in behind the S&P/ASX 200 Energy Index and its 4% rise.

The Coronado Global Resources Inc (ASX: CRN) share price is leading the materials sector right now with a 6.3% gain.

That of Core Lithium is in second place while Evolution Mining Ltd (ASX: EVN) is coming in third, rising 4.4%.

Interestingly, the Pilbara Minerals Ltd (ASX: PLS) share price isn’t putting forward such a roaring gain. It’s gained 3.7% to trade at $3.68 right now amid reports JP Morgan slapped the stock with a $4.10 price target and an outperform rating. The broker also upped its expectations for lithium prices, The Australian reports.

The broker has tipped the market to be undersupplied until 2025 and has lifted its price targets on lithium carbonate and spodumene by 20% and 25% respectively, according to the publication.

Such a bullish outlook might go some way to explaining the Core Lithium share price’s day in the sun. And it’s just the latest gain posted by the Northern Territory-focused lithium developer.

The company’s stock has soared 113% since the start of 2022. It’s also currently trading 254% higher than it was this time last year.

For comparison, the ASX 200 has dumped 10% year to date and 9% over the last 12 months.

The post Why is the Core Lithium share price cruising 5% higher today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Where does Tesla get its lithium and do any ASX shares benefit?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping
• Why is the Core Lithium share price tumbling 5% on Friday?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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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