The Novonix Ltd (ASX: NVX) share price is ending the week in a positive fashion.
In afternoon trade, the battery materials technology company's shares are up 2% to $1.87.
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Why is the Novonix share price ending the week strongly?
Investors have been bidding the Novonix share price higher today despite there being no news out of the company.
However, it is worth noting that the company's shares have been in fine form in recent weeks, so today's gain appears to be a continuation of that.
For example, since the start of the year, the Novonix share price is up 27%. This is almost quadruple the return of the ASX 200 index, which is up 7.3% over the same period.
Though, it is worth remembering that the company's shares were hammered in 2022. As a result, as you can see on the chart below, shareholders are still sitting on a paper loss of 71% over the last 12 months.
Can it keep rising?
With sentiment continuing to improve in the battery materials industry and interest rates close to peaking, there's certainly potential for the Novonix share price to keep rising.
Morgans, for example, has a speculative buy rating and $3.11 price target on its shares. This implies potential upside of approximately 65% between now and this time next year.
Though, it is worth highlighting the word "speculative" in the broker's recommendation. Novonix is high up on the risk scale in an already risky part of the market.
