The Novonix Ltd (ASX: NVX) share price is pushing higher on Wednesday morning.
At the time of writing, the battery technology company's shares are up 2% to $7.86.
Why is the Novonix share price pushing higher?
Today's gain appears to have been driven by broad strength on the Australian share market and an update on its US listing.
In respect to the latter, this morning Novonix revealed that its American Depositary Receipts (ADRs) have now commenced trading on the Nasdaq Stock Market. The Bank of New York Mellon has been appointed depositary, custodian, and registrar for the program.
The release notes that the ADRs are based on the company's ordinary shares currently on issue, with each ADR representing four fully paid shares of Novonix.
Are Novonix shares going higher?
Unfortunately, one leading broker believes the Novonix share price may have peaked for the time being.
This morning the team at Morgans retained its hold rating and cut its price target to $6.97. This implies potential downside of 11% from current levels.
Though, it is worth noting that the broker does see scope for the Novonix share price to trade beyond its price target.
Morgans commented: "NVX offers ASX investors an opportunity to get direct exposure to the North American battery market. The share price exceeds the value of our base case DCF valuation but it has had a tendency to push higher on positive news. Should NVX secure a major customer like Samsung or Sanyo then the stock could push higher on positive sentiment."
"We think that once any potential momentum stalls though the price will be vulnerable to pull backs and we maintain our HOLD rating. NVX's share price has shown very high levels of volatility which we think will continue," it concluded.
