The Novonix Ltd (ASX: NVX) share price has been a strong performer on Friday morning.
At the time of writing, the batter materials and technology companyâs shares are up 10% to $2.62.
Why is the Novonix share price charging higher?
Investors have been scrambling to buy Novonix shares on Friday after Wall Street had its best night in over two years.
Investors were pouring back into the market after the latest US inflation reading came in softer than expected. According to CNBC, Octoberâs US consumer price index rose 0.4% for the month and 7.7% from this time last year.
This compares to the marketâs expectation for increases of 0.6% and 7.9%, respectively.
As a result of this reading, investors appear to be betting that inflation has now peaked and the US Federal Reserve will not have to increase rates as much as feared to tame the beast.
It isnât just Novonix that is rising today in the battery materials industry. Hereâs a summary of how some battery materials shares are performing:
- Allkem Ltd (ASX: AKE) share price is up 5%
- Core Lithium Ltd (ASX: CXO) share price has risen 4.5%
- Piedmont Lithium Inc (ASX: PLL) share price has climbed 3.5%
- Sayona Mining Ltd (ASX: SYA) share price is up 5%
Can Novonix keep rising?
The team at Morgans believes that the Novonix share price can keep rising from here.
Its analysts currently have a speculative buy rating and $3.11 price target on its shares.
This implies potential upside of almost 19% over the next 12 months even after todayâs solid gains.
The post Why is the Novonix share price surging 10% on Friday? appeared first on The Motley Fool Australia.
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More reading
- What’s boosting the Novonix share price on Wednesday?
- Why are Novonix shares listed on the Nasdaq as well as the ASX?
- Why did the Novonix share price jump 50% in October?
- Why is the Novonix share price gaining today?
- Why is the Novonix share price tanking 5% today?
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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