Down 13% in a month, is the Vulcan share price a buying opportunity?

Interesting divergence in market versus analyst sentiment at play.

| More on:
Woman on her laptop thinking to herself.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Vulcan shares extend losses today as markets continue digesting the fallout from Russia-Ukraine 
  • Despite recent pullbacks in its share price brokers are still positive on Vulcan and rate it as a buy 
  • In the last 12 months, the Vulcan share price has jumped 22% 

Shares in Vulcan Energy Resources Ltd (ASX: VUL) are tracking lower after sliding down from the open of trade on Thursday.

At the time of writing, the Vulcan share price is at $9.06, down 1% on the day, extending losses to almost 13% for the year to date.

TradingView Chart

Is Vulcan a buying opportunity?

With the recent volatility and pullback, the gates have opened for investors interested in Vulcan.

Shares have glided down from a previous high of $15.90 in September last year, and there’s been volatility along the way.

Even still, according to Bloomberg data, three-out-of-three analysts covering the stock have it as a buy right now.

With that, the consensus price target is $19.07 per share, although Canaccord Genuity values the company at $23 per share.

One factor that could drive the Vulcan share price higher is a shift away from Russian energy imports, one broker says.

“Overall, we expect the conditions for Vulcan to receive a further impetus not only due to the conflict, but also due to the fulfilment of climate targets,” wrote Alster Research in a recent note.

Nevertheless, it still values Vulcan at $20 per share – an upside potential of 78% if the firm is right on its conviction.

It is confident that Vulcan can be a “provider of renewable energy and lithium with a zero-carbon footprint” resulting in a buy rating.

With most other majors in energy, utilities and materials booming in 2022, Vulcan is down 13%, yet this hasn’t seemed to deter these brokers.

In the last 12 months, the Vulcan share price has jumped 22% but has crept down by more than 13% this past month.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

oil and gas worker checks phone on site in front of oil and gas equipment
Energy Shares

Santos shares go cold despite energy regulator outlining ‘crucial’ role gas will play for decades

The Australian Energy Market Operator has released a 30-year plan for investment to enable the transition to renewables.

Read more »

An oil worker assesses productivity at an oil rig
Energy Shares

How did ASX energy shares perform in June?

This month has seen some ASX energy giants gain while others tumbled.

Read more »

A surprised man sits at his desk in his study staring at his computer screen with his hands up while he watched the Sezzle share price fall despite the company accepting a takeover offer from Zip Co
Energy Shares

Why is the Woodside share price sliding today?

Oil prices appear to be weighing on ASX energy shares today.

Read more »

busy trader on the phone in front of board depicting asx share price risers and fallers
Energy Shares

AGL share price lifts as Brookfield caught buying

It's been a rollercoaster day so far for the ASX energy giant. Here's why.

Read more »

a judge sitting in a blurred background reaches forward to strike his gavel on the strikeplate on his judge's bench.
Energy Shares

Origin share price shrugs off record $17 million fine from Federal Court

Investors in the energy company didn't appear fazed by the news.

Read more »

A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath
Energy Shares

Hazer shares climb 8% amid CEO appointment

The hydrogen producer's shares are off to a flying start on Wednesday.

Read more »

Oil worker drilling on the oil field
Energy Shares

Why are ASX 200 energy shares surging today?

Energy shares are extending their rally today amid a global uptick in energy commodity prices.

Read more »

a gas worker with hard hat and high visibility vest stands cross armed and smiling in front of an elaborate steel structured gas plant.
Energy Shares

Own Santos shares? This analyst expects gas prices to grow through to 2025

Could rising gas prices help the Santos share price?

Read more »