Although they are trading well off their highs, Core Lithium Ltd (ASX: CXO) shares have still been a great place to invest over the last 12 months.
As you can see on the chart below, the lithium developer's shares have risen 52% since this time last year.
This would have turned a $10,000 investment into $15,200.
But that was then, and this is now. What might a $10,000 investment today look like in a year?
What return could you get from Core Lithium shares
Opinion is divided on where Core Lithium shares are heading between now and this time next year.
In the bear corner you have Goldman Sachs, which thinks the company's shares are overvalued. It has a sell rating and 95 cents price target on them. This compares to the current Core Lithium share price of $1.11.
If Goldman is on the money with its recommendation, a $10,000 investment would be worth approximately $8,500 at the end of the year. Not great!
The bull corner
In the bull corner you have Macquarie.
Its analysts recently upgraded the company's shares to an outperform rating with a $1.30 price target. Based on its current share price, this implies potential upside of 17% for investors over the next 12 months.
This would turn a $10,000 investment into $11,700, which is much better!
Will the bulls or bears win?
It is impossible to know which broker will make the right call.
However, what may have a major say on things is the lithium price. With Goldman Sachs expecting lithium prices to start their significant decline later this year, sentiment could improve if prices stay strong.
Conversely, if they start to weaken as Goldman predicts, this could put a lot of pressure on the lithium industry and send Core Lithium shares tumbling towards the broker's bearish price target.
Investors may want to keep a close eye on the monthly digital lithium auctions held by Pilbara Minerals Ltd (ASX: PLS). The prices it commands each month should provide investors with an idea of what is happening behind the scenes in the industry.
