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.
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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.
