The Allkem Ltd (ASX: AKE) share price has been a strong performer this year.
Since the start of 2023, the lithium miner's shares have risen an impressive 42%.
This compares favourably to the ASX 200 index, which is up approximately 2.5% year to date.
Will Allkem shares be able to rise further from here or have they peaked? Let's find out.
Can the Allkem share price keep rising?
The good news is that analysts at Macquarie see plenty of room for the Allkem share price to rise from current levels.
A note out of the investment bank from last week reveals that its analysts have retained their outperform rating with a price target of $17.40.
Based on its current share price of $15.97, this means a potential upside of 9% for investors over the next 12 months.
Macquarie was pleased with Allkem's update on its Mt Cattlin spodumene operation. Noting that it has laid out underground plans to extend the life of the mine meaningfully, which bodes well for its earnings over the medium term. Macquarie adds:
Interestingly, AKE has highlighted that Stage 4-2 could be developed including underground mining which could avoid the high strip ratio at depth.
It isn't just Macquarie that sees value in its shares at the current level. Goldman Sachs recently retained its buy rating with an improved price target of $17.20. It said:
Allkem remains the best positioned for growth optionality, with equity LCE production set to grow >4x by FY28E.
Finally, Bell Potter is even more bullish and has a buy rating and a $19.20 price target on its shares. This implies a potential upside of approximately 20% for investors from current levels over the next 12 months.
