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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