The Novonix Ltd (ASX: NVX) share price has been a strong performer on Friday morning.
At the time of writing, the batter materials and technology company's shares are up 10% to $2.62.
Why is the Novonix share price charging higher?
Investors have been scrambling to buy Novonix shares on Friday after Wall Street had its best night in over two years.
Investors were pouring back into the market after the latest US inflation reading came in softer than expected. According to CNBC, October's US consumer price index rose 0.4% for the month and 7.7% from this time last year.
This compares to the market's expectation for increases of 0.6% and 7.9%, respectively.
As a result of this reading, investors appear to be betting that inflation has now peaked and the US Federal Reserve will not have to increase rates as much as feared to tame the beast.
It isn't just Novonix that is rising today in the battery materials industry. Here's a summary of how some battery materials shares are performing:
- Allkem Ltd (ASX: AKE) share price is up 5%
- Core Lithium Ltd (ASX: CXO) share price has risen 4.5%
- Piedmont Lithium Inc (ASX: PLL) share price has climbed 3.5%
- Sayona Mining Ltd (ASX: SYA) share price is up 5%
Can Novonix keep rising?
The team at Morgans believes that the Novonix share price can keep rising from here.
Its analysts currently have a speculative buy rating and $3.11 price target on its shares.
This implies potential upside of almost 19% over the next 12 months even after today's solid gains.
