The IGO Ltd (ASX: IGO) share price has been a positive performer on Friday.
In afternoon trade, the battery materials producer's shares are up almost 5% to $10.14.
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Why is the IGO share price pushing higher?
Today's gain has been driven largely by a rebound in the resources sector.
Investors have been piling back into the sector amid reports that China is planning a massive US$220 billion stimulus program with a focus on infrastructure spending. This bodes well for demand for commodities and should be supportive of prices.
The buying has been so strong in the sector today that the S&P/ASX 200 Resources index is currently up 2.1%. This compares favourably to the ASX 200 index, which is up 0.5% at the time of writing.
Anything else?
In addition to the above, the battery materials industry has been in fine form today, with a number of lithium shares such as Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) rebounding strongly from recent weakness.
The Allkem share price is currently up over 5% and the Pilbara Minerals share price is up a sizeable 7.5%.
IGO has exposure to lithium through its joint venture with Tianqi Lithium Corporation. This includes stakes in the Greenbushes Lithium Mine and the Kwinana Lithium Hydroxide Refiner.
Can its shares keep rising?
According to a recent note out of Macquarie, its analysts see plenty of room for the company's shares to run higher.
Macquarie currently has an outperform and $17.00 price target on them. Based on the current IGO share price, this implies potential upside of almost 70% over the next 12 months.
The broker likes the company due to its exposure to critical minerals, which has been boosted since the completion of the Western Areas acquisition.
