It has been a case of meteoric by name and meteoric by nature when it comes to returns for Meteoric Resources NL (ASX: MEI) shares this year.
Since the start of the year, the ASX rare earths stock has risen a whopping 330%.
But if you thought the gains were over, think again.
This morning, the team at Bell Potter has released a broker note which suggests that the company's shares could almost double from current levels.
What is the broker saying about this ASX rare earths stock?
Bell Potter highlights that the company has released "superb" in-fill air-core drilling results from its Soberbo deposit at the Caldeira project.
It notes that the drilling "confirms management's view that mineralisation occurs below the depth of the historical auger program of which the inferred Mineral Resource Estimate was based off." This bodes well for its mineral resource update, which is due in the second half of FY 2024.
In light of this, the broker has retained its speculative buy rating and 40 cents price target on the ASX rare earths stock.
Based on the current Meteoric Resources share price of 21.5 cents, this implies potential upside of 86% for investors over the next 12 months.
The broker summarises:
We view the Caldeira project and MEI as being attractively positioned and maintain our $0.40/sh valuation and Speculative Buy recommendation. We anticipate MEI will look to de-risk the project over the next 12 months, with further diamond drilling increasing the Resource confidence, metallurgical test work optimising leach recoveries and the progression of a preliminary economic assessment.
All in all, this could make the company a good option for investors that have a high tolerance for risk and want exposure to rare earths.
