The Vulcan Energy Resources Ltd (ASX: VUL) share price has been having a good few weeks.
Since this time last month, the lithium developer's shares have risen a sizeable 10%.
This is almost three times greater than what the ASX 200 index has achieved during the same period.
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Can the Vulcan share price keep charging higher?
The good news for shareholders is that one broker believes the Vulcan share price has a long way to run before peaking.
According to a recent note out of Germany-based broker Alster Research, its analysts have reiterated their buy rating and lofty $20.00 price target on the company's shares.
Based on the current Vulcan share price of $8.20, this implies potential upside of 144% over the next 12 months.
Why is it bullish?
Alster is bullish on Vulcan due to its belief that the company's Zero Carbon Lithium project in Germany is "predestined to mark the beginning of the decarbonization of the battery industry."
The broker also highlights that the company is "experiencing an increasing positive momentum of the political backing, as Germany's high dependence on Russian gas produces a more favorable climate towards geothermal energy."
Vulcan is looking to power its operation with geothermal energy and sell whatever is left over.
All in all, the broker believes the next 12 months will be a landmark period for the company. It concludes:
Vulcan faces a landmark year, as it will soon enter a multi-year capex-intensive phase. Building on a strong cash position of EUR 175m per 30 June 2022, the company is preparing its drilling program to commence, while the rigs are currently being prepared. The favorable political environment should continue to provide tailwinds. Regarding the upcoming DFS and PFS, we will update our capex projections upon release. More importantly, we expect the production targets to increase, which we believe to be a catalyst for Vulcan's share price. We confirm our PT with AUD 20.00, equivalent to EUR 13.71 and reiterate to BUY.
