Down 13% in a month, is the Vulcan share price a buying opportunity?

Interesting divergence in market versus analyst sentiment at play.

| More on:
Woman on her laptop thinking to herself.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Vulcan shares extend losses today as markets continue digesting the fallout from Russia-Ukraine 
  • Despite recent pullbacks in its share price brokers are still positive on Vulcan and rate it as a buy 
  • In the last 12 months, the Vulcan share price has jumped 22% 

Shares in Vulcan Energy Resources Ltd (ASX: VUL) are tracking lower after sliding down from the open of trade on Thursday.

At the time of writing, the Vulcan share price is at $9.06, down 1% on the day, extending losses to almost 13% for the year to date.

TradingView Chart

Is Vulcan a buying opportunity?

With the recent volatility and pullback, the gates have opened for investors interested in Vulcan.

Shares have glided down from a previous high of $15.90 in September last year, and there's been volatility along the way.

Even still, according to Bloomberg data, three-out-of-three analysts covering the stock have it as a buy right now.

With that, the consensus price target is $19.07 per share, although Canaccord Genuity values the company at $23 per share.

One factor that could drive the Vulcan share price higher is a shift away from Russian energy imports, one broker says.

"Overall, we expect the conditions for Vulcan to receive a further impetus not only due to the conflict, but also due to the fulfilment of climate targets," wrote Alster Research in a recent note.

Nevertheless, it still values Vulcan at $20 per share – an upside potential of 78% if the firm is right on its conviction.

It is confident that Vulcan can be a "provider of renewable energy and lithium with a zero-carbon footprint" resulting in a buy rating.

With most other majors in energy, utilities and materials booming in 2022, Vulcan is down 13%, yet this hasn't seemed to deter these brokers.

In the last 12 months, the Vulcan share price has jumped 22% but has crept down by more than 13% this past month.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Energy Shares

Is Woodside stock a buy for its 8% dividend yield?

Woodside's dividends look fat, but proceed with caution...

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
Share Fallers

ASX 200 uranium stock alert: Paladin Energy shares just crashed 29%!

Paladin Energy shares are under intense selling pressure on Tuesday.

Read more »

A happy woman wearing a sweatband at the gym celebrates success or an achievement by puffing up and flexing her muscles with pride.
Energy Shares

1 ASX dividend stock down 43% I'd buy right now

Here’s a dividend stock worth getting energised about.

Read more »

A happy woman flies with arms outstretched on her boyfriend's back on the beach at dusk.
Energy Shares

2 ASX utility stocks that are smart buys for Aussies in November

These two could be standouts, according to top brokers.

Read more »

Miner looking at a tablet.
Energy Shares

Down 12% in a month! Is the Woodside share price finally back in bargain territory?

This stock has lost some investor energy. What now?

Read more »

sad looking petroleum worker standing next to oil drill
Energy Shares

Santos shares hit new lows in October. What next?

There's an interesting risk/reward calculus at play.

Read more »

a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.
Technology Shares

The great Australian ASX Green Tech rally is starting now

The future could be bright – and green, experts say.

Read more »

A miner stands in front oh an excavator at a mine site
Broker Notes

Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

Read more »