Although it has sunk into the red today, the Mineral Resources Limited (ASX: MIN) share price has still gained over 54% since the start of the year.
Can its shares go higher?
According to one leading broker, there could still be meaningful upside ahead for its shares over the next 12 months following the miner and mining services company's annual general meeting yesterday.
A broker note out of Morgan Stanley this morning reveals that its analysts have retained their overweight rating and increased the price target on its shares to $22.30.
This price target implies potential upside of approximately 19% from the current share price.
According to the note, the broker believes that Mineral Resources has the potential to expand its lithium production significantly in the future, making it a great option for investors looking to gain exposure to the fast-growing lithium industry.
Should you invest?
I would have to agree with Morgan Stanley on this one. I believe its Mount Marion and Wodgina sites have significant potential and can make Mineral Resources one of the biggest players in the industry.
Which is certainly great timing given the high prices the metal is commanding and the strong demand from battery manufacturers due to the rapid rise in electric vehicle usage.
As I mentioned yesterday, recent data provided by Bloomberg shows that global sales of battery-powered electric vehicles and plug-in hybrids exceeded 287,000 units during the September quarter. This was an impressive 63% increase on the prior corresponding period and 23% higher from the second-quarter of 2017.
In my opinion, this could mean lithium miners such as Mineral Resources, Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS), and Orocobre Limited (ASX: ORE) have very bright futures ahead of them.
