Pilbara Minerals (ASX:PLS) share price lifts following bullish broker note

This lithium miner's shares are rising again on Monday…

| More on:
happy mining worker fortescue share price

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 in a positive fashion.

In morning trade, the lithium miner's shares are up over 4% to $2.14.

This latest gain means Pilbara Minerals' shares are now up 146% since the start of the year.

Why is the Pilbara Minerals share price pushing higher again?

The Pilbara Minerals share price has been pushing higher on Monday despite there being no news out of the company.

However, potentially giving its shares a boost is increasingly positive sentiment in the battery materials sector and a bullish broker note out of Macquarie Group Ltd (ASX: MQG) last week.

In respect to the latter, according to the note, the broker has an outperform rating and $2.70 price target on the company's shares.

Based on the latest Pilbara Minerals share price, this implies potential upside of 26% over the next 12 months.

Why is Macquarie bullish?

Macquarie is bullish on the Pilbara Minerals share price due to its positive view on lithium demand and prices and its belief that the company is well-placed to benefit thanks to its growing production.

The broker believes that the company's staged development of its Pilgan and Ngungaju operations can support a seven-year production growth rate of around 20% per annum.

It also notes that last week the company upgraded its resource estimate after incorporating the Ngungaju project. Pilbara Minerals has increased its total Measured, Indicated and Inferred Resource by 39% to 308.9 million tonnes.

This was larger than what the broker was expecting and reinforces the Pilgangoora Lithium-Tantalum Project's position as the world's premier hard rock lithium operation.

All in all, Pilbara Minerals' shares may have smashed the market this year, but this leading broker still believes they can keep rising from here.

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 has no position in any of the stocks mentioned. 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

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 was back to the races this Tuesday.

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Why the Qantas share price soared 20% in May to new all-time highs

With another stellar month in May, Qantas shares are up more than 79% in a year.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why DroneShield, Judo, Pepper Money, and Strickland shares are surging today

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

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
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 »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX 200 stock has rocketed 86% since April?

This sky rocketing ASX 200 stock continues to defy short sellers. But how?

Read more »

Five happy young friends on the coast, dabbing and raising their arms in the air.
Share Gainers

The best 5 ASX 200 shares to buy and hold in May revealed

Can you guess which five ASX 200 shares raced ahead of the benchmark in May?

Read more »

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
Share Gainers

Why are Soul Patts shares up 9% today?

A marriage proposal has seen investors flock to this company.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Share Gainers

These were the best-performing ASX All Ords shares in May

These shares caught the eye last month. What was getting investors excited?

Read more »