The Vulcan Energy Resources Ltd (ASX: VUL) share price has been a sensational performer in 2021.
Since the start of the year, the lithium developer's shares have risen a remarkable 375% to $13.18.
Could the Vulcan Energy share price hit $22 by the end of the year?
Given how much the Vulcan Energy share price has risen in 2021, it might come as a surprise to learn that one broker still sees significant potential upside ahead.
According to a recent note out of Germany-based Alster Research, its analysts have a buy rating and $22.00 price target on the company's shares.
Based on the current Vulcan Energy share price, this implies potential upside of 67% for investors.
In light of this, this broker appears to see scope for the company's shares to be trading in or around $22.00 by the end of the year.
Why is the broker bullish?
Alster Research notes that Vulcan recently raised $200 million through a placement of 14.8 million shares for $13.50 per new share. It believes this leaves the company well-positioned for the future.
The broker commented: "Due to the placement, Vulcan will have the scope to execute a targeted acquisition of existing brownfield energy and brine infrastructure. The additional capital also widens the leeway to act opportunistically, and thus to accelerate the process of ramping up production further."
"Vulcan Energy provides a rare opportunity to benefit from the strongly growing lithium growth trajectory and, by the same token, to participate in a project directly located in Germany, a heartland of automotive industry. We raise our PT to AUD 22.00 (old PT: AUD 19.50), equivalent to EUR 13.65, and reiterate our BUY recommendation," it concluded.
All in all, this could make the Vulcan Energy share price one to watch in the coming months.
