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Orocobre Limited shares race higher on broker upgrade

It isn’t only the Pilbara Minerals Ltd (ASX: PLS) share price that is climbing notably higher in the lithium industry on Tuesday, the Orocobre Limited (ASX: ORE) share price is also one of the best performers on the market today.

At the time of writing the lithium miner’s shares are up 6% to $6.75. This stretches Orocobre’s 12-month return to approximately 75%.

Why are Orocobre’s shares pushing higher today?

Whilst there has been no news out of Orocobre today, it was the subject of a positive broker note out of Citi on Monday which could be the catalyst for this gain.

That note revealed that Citi’s analysts have upgraded Orocobre’s shares to a buy rating from neutral. Furthermore, the broker has increased the price target on its shares to $8.00 from $7.70.

This price target implies potential upside of 18.5% for its shares even after taking into account today’s strong gain.

Whilst this is a tempting proposition, it is worth remembering that lithium miners like Orocobre and Pilbara Minerals are high up on the risk scale and potentially unsuitable for many investors.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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