Much to the delight of it shareholders, the Galaxy Resources Limited (ASX: GXY) share price is heading in the right direction once again.
In morning trade the lithium miner's shares are up almost 4% to $2.51.
But thankfully for shareholders, according to one leading broker, there could still be significant upside left for its shares this year.
What is the broker saying?
According to a note out of Morgan Stanley this morning, the broker has retained its overweight rating on Galaxy's shares and increased its price target from $2.25 all the way up to $3.00.
Based on its current share price, this price target implies potential upside of approximately 20% for the lithium miner's shares.
Which certainly isn't bad considering Galaxy's shares are already up over 40% since this time last month.
Should you invest?
Whilst lithium miners such as Galaxy, Orocobre Limited (ASX: ORE), and Kidman Resources Ltd (ASX: KDR) are certainly among the most volatile shares on the Australian share market, I do believe that they could be great long-term investments due to the tailwinds they are experiencing.
With electric vehicle and renewable energy usage expected to rise exponentially over the next couple of decades, demand for lithium is likely to grow at an overwhelmingly quick rate.
Although supply is likely to pick up as a result, even factoring in all known potential supply still leaves supply and demand precariously balanced.
This should mean that Galaxy and its peers enjoy high lithium carbonate prices for some time to come, leading to bumper profit growth.
I believe this puts Galaxy in a great position to grow significantly, ultimately generating high level of free cash flow that can be returned to shareholders in the form of dividends.
