The Allkem Ltd (ASX: AKE) share price is having a strong day on Wednesday.
In afternoon trade, the lithium miner's shares are up over 6% to $14.00.
This leaves the Allkem share price trading within touching distance of its record high of $14.38.
Why is the Allkem share price surging higher?
Investors have been bidding the Allkem share price higher today for a few reasons.
One is the strong night of trade that lithium miners had on Wall Street. This saw the likes of Livent Corp and Sociedad Quimica y Minera de Chile record gains of over 5%.
Also giving Allkem's shares a boost has been a broker note out of Macquarie Group Ltd (ASX: MQG) this week.
That note saw the broker retain its outperform rating and lift its price target to a lofty $21.00. This suggests that Alkem's shares could still rise 50% despite trading close to record highs.
Macquarie made the move on the belief that lithium prices will remain stronger for longer due to a growing demand and a supply shortfall.
This has led to the broker bumping its earnings estimates materially. So much so, Allkem's shares trade at only 10x FY 2023 earnings according to Macquarie's estimates.
