Sigma Lithium has more room to run even after already surging more than 100% in 2022, according to Bank of America. Analyst Matthew DeYoe, who has a buy rating on the stock, hiked his price target on Sigma to $37 per share. That’s 28% above Wednesday’s close of $28.87. Sigma Lithium is “moving into the most critical three months” of construction on its Xuxa lithium project in Brazil, the analyst said. “With lithium prices as high as they are, speed to market is everything, and we still believe commercial shipments in 1Q23 is a reasonable goal. From there, comparable assets would point to a three month ramp to full utilization. This means Sigma would be selling its first tonnage into a market starved for product,” DeYoe wrote in a Wednesday note. Lithium prices have been on a tear this year, as demand for electric vehicles has shot through the roof. According to Benchmark , a firm that tracks lithium prices, the commodity’s value is up more than 300% over the past year and 122% in 2022. Sigma’s stock value has followed lithium higher. Shares of the lithium company have more than doubled this year, and they have soared more than 200% over the past 12 months. Despite these sharp gains, DeYoe thinks the stock can keep going higher. “With the stock up 165% ytd (vs. -18% XLB), we understand the apprehension by investors who feel they have ‘missed it,’ but we continue to see value in SGML shares,” DeYoe added. “Our PO settles at $37 accordingly, which reflects a 10% premium to the NAV, down from 20%, as we believe more value is correctly being attributed to SGML. Still, monetization of tailings and consolidation of phase 2 and 3 would be upside to our current analysis,” read the note. To be sure, the stock could be dinged should lithium prices turn lower, or operating costs rise, according to the note. —CNBC’s Michael Bloom contributed to this report.