One of the best performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) today has been the Galaxy Resources Limited (ASX: GXY) share price.
In late afternoon trade the lithium miner's shares are up 6% to $3.63.
Why are its shares higher?
With no news out of Galaxy, today's climb higher is likely to be related to a broker note out of UBS this morning.
Although its analysts have retained their neutral rating on Galaxy, the market appears to have responded positively to its decision to lift the price target it has on its shares.
According to the note, UBS has increased its price target from $3.20 up to $3.60, believing that 2018 could be a big year for Galaxy as it looks at accelerating its growth through its international assets.
Should you invest?
As well as its world class assets, I think that Galaxy is a great buy and hold investment option due to the strong demand that has been forecast for lithium over the next decade and the limited supply coming to market.
This should ensure that lithium miners such as Galaxy, Pilbara Minerals Ltd (ASX: PLS), and Orocobre Ltd (ASX: ORE) continue to enjoy high prices for the rechargeable battery ingredient for some time to come.
But having said that, I would agree with UBS that its shares are about fair value now. In light of this, I would suggest investors wait for an opportunity to get in at a lower price.
