There is no denying that analysts who focus on growth stocks vary quite a bit. With that in mind, investors in Li-Cycle (NYSE:LICY) and LICY stock tend to get a variety of different opinions on the risks and rewards of investing in such growth-oriented play.
Among the more bullish on growth stocks is Wedbush analyst Dan Ives. And today, Ives released a rather bullish report that has sent LICY stock more than 10% higher at the time of writing.
Putting this increase in context is important, because the markets have been selling off hard over the past week. Major indices are down 2%-3% at the time of writing. Indeed, as far as many investors are concerned, now appears to be the time to take some money off the table.
However, there are deals in every bull market. And while we are inching closer to a correction, it appears investors have reason to latch onto LICY stock. Let’s dive into what has shares of this lithium-ion battery resource recovery play shooting higher.
LICY Stock Moving Higher on Wedbush Upgrade
Today, Ives initiated coverage on Li-Cycle, placing a 12-month price target of $14 on this stock.
As the largest North American player in the lithium recovery space, Li-Cycle is getting a lot of attention right now. For those who haven’t noticed, EV sales are surging, and battery technologies are becoming more relevant. Where (and how) these batteries are being laid to rest is a key concern among environmentalists and good corporate citizens.
Wedbush cites data surrounding where the battery market is headed as a key determining factor of this outsized price target on LICY stock. Experts project that the global battery market will increase 12.3% through 2030, valuing the market at $115 billion in less than ten years. Given Li-Cycle’s positioning in this nascent, fast-growing space, there’s a lot to like about this company.
In this case, I think Wedbush is on the money with its bullish take on LICY stock. Indeed, the “pending green tidal wave with battery recycling front and center” is something I think many investors aren’t really considering right now. This is a downstream play on a surging battery sector that could see significant momentum. That is, should investors consider alternative plays on the battery technology space.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.