The Vulcan Energy Resources Ltd (ASX: VUL) share price hit a snag towards the end of FY22.
Since soaring to a record high of $16.65 on 13 September 2021, the clean lithium developer's shares have been trending lower.
At the time of writing, Vulcan Energy shares are swapping hands at $5.74, down more than 65% from their peak 10 months ago.
Let's take a peek at the outlook for Vulcan Energy shares for FY23.
Vulcan Energy shares a buy, according to Alster Research
The ASX lithium sector took a hit following a bearish analysis from broker Goldman Sachs that indicated prices for the crucial battery-making ingredient could tumble.
According to the broker, "fundamental mispricing has, in turn, generated an outsized supply response well ahead of the demand trend in focus".
Currently, lithium prices are fetching around US$72,000 per tonne.
Nonetheless, the company aims to become the world's first lithium producer with net zero greenhouse gas emissions by 2025. It hopes to supply the European lithium-ion battery and electric vehicle market with a battery-quality lithium hydroxide chemical product.
What do other brokers say?
While Goldman Sachs didn't initiate a price target on Vulcan Energy shares, UBS did.
Earlier this year, the Swiss investment firm raised its rating by 7.4% to $10.20, implying a significant upside of almost 80% for investors.
And, as my Fool colleague James reported, the Alster Research team was even more bullish.
Its analysts believe Vulcan Energy shares are a buy with a massive price target of $20.00 apiece.
The broker commented:
We remain confident about Vulcan's operational development and improvement in becoming a provider of renewable energy and lithium with a zero-carbon footprint, which is why we reiterate our buy recommendation.
However, this broker note came out before Goldman Sachs' negative report, which together with other international factors, sent the industry into a freefall.
