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The IGO Ltd (ASX: IGO) share price may be surging ahead lately, but one broker thinks it can go even higher.
The company's shares are currently swapping hands at $12.76, down 1.85% today. However, that's still a 17% since the close of trading on February 28. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.8% during that same time frame.
However, one broker believes there is still more to come from the nickel miner. Let's take a look.
Price target lifts
Analysts at Citi have lifted the IGO share price target, a NAB report reveals. The broker has upgraded the company's price target to $14. That suggests an upside of almost 10% on the current price.
The broker reportedly sees IGO making "hefty margins of 90%" in the first half of FY22.
Nickel prices surged 90% to hit all-time highs in global markets overnight amid supply concerns as a result of Russia's invasion of Ukraine. Russia provides about 10% of the world's nickel.
As Motley Fool Australia reported earlier, investors are fearing western sanctions against Russia could disrupt air and sea shipments of the commodity.
Citi predicts nickel prices to rally to US$30,000/tonne in quarter two of FY22, before moderating in quarter three.
IGO owns and operates the Nova nickel, copper, and cobalt mining operation in Western Australia.
Today, IGO updated the market with a copy of a presentation to the Euroz Hartleys Conference. The company stated it can gain leverage from the disruptive transition to clean energy. IGO highlighted its portfolio of "high-quality assets" with exposure to nickel, copper, cobalt, and lithium.
IGO share price snapshot
The IGO share price has soared nearly 100% in the past year and is up 11% year to date.
In the past month, the miner's shares have gained 6%, while they have risen 17% in the past week.
For perspective, the benchmark ASX 200 index has returned around 4% over the past year.
