Why the Pilbara Minerals (ASX:PLS) share price is gaining 3.5% today

This lithium miner is on fire in 2021…

| More on:
These three ASX mining shares rocketed by more than 20% today

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

The Pilbara Minerals Ltd (ASX: PLS) share price has started the week strongly.

In afternoon trade, the lithium producer's shares are up 3.5% to $1.55.

This leaves the Pilbara Minerals share price trading within touching distance of its record high of $1.60.

Why is the Pilbara Minerals share price charging higher?

Today's rise in the Pilbara Minerals share price comes despite there being no news out of the company today.

However, it is worth noting that rival Orocobre Limited (ASX: ORE) released a positive update on Friday afternoon, which may have gone down well with investors.

That update revealed that sales of Orocobre's Olaroz lithium carbonate during the June quarter were 2,549 tonnes at US$8,476/tonne free on board. The latter was an increase of 45% on the price it was commanding in the March quarter. It is also a 170% increase on the price it was receiving nine months ago.

This is likely to mean that Pibara Minerals is also commanding strong prices for its lithium as well right now.

Can its shares keep climbing?

One leading broker that still sees some value in Pilbara Minerals shares is Macquarie Group Ltd (ASX: MQG).

According to a recent note out of the investment bank, the broker has an outperform rating and $1.80 price target on its shares.

Based on the current Pilbara Minerals share price, this implies potential upside of 16% over the next 12 months.

Macquarie was pleased with the company's recent quarterly update, which revealed stronger than expected production during the fourth quarter. In addition to this, it found recent drilling activities as promising and suspects that mineral resource estimates could be upgraded in the coming months.

Following today's gain, Pilbara Minerals' shares are now up an impressive 78% since the start of the year.

Motley Fool contributor James Mickleboro 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Happy teen friends jumping in front of a wall.
Share Gainers

Guess which 4 ASX 200 shares are rocking new 52-week highs today!

Investors just sent these four ASX 200 shares to one-year-plus highs.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Evolution Mining, Orthocell, Platinum, and Turaco shares are charging higher

These shares are having a better day that most on Thursday.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing hump day session for the ASX today.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX managed to bank a small rise this Tuesday.

Read more »

Sport trainer talking to little girl who is climbing wooden ladder in gym.
Share Gainers

Why Vault Minerals, Droneshield, Westgold Resources shares are climbing higher today

These shares are gaining on Tuesday, but why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Financial Shares

5 best ASX 200 financial shares of FY25 (CBA didn't make the cut!)

These stocks were well and truly 'in the black' for share price growth last financial year.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Amaero, Black Cat, Domino's, and Ramelius shares are racing higher today

These shares are having a good session on Tuesday. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the trading week for investors this Monday.

Read more »