Pilbara Minerals (ASX:PLS) share price hits record high as Citi says 'too early to sell'

This lithium share is having another strong day…

| More on:
A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price 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 is having yet another positive day.

So much so, the lithium miner's shares have hit a record high of $3.65 on Wednesday.

This means that Pilbara Minerals' shares are now up a massive 35% in the space of a month.

Why is the Pilbara Minerals share price charging higher today?

Investors have been bidding the Pilbara Minerals share price higher on Wednesday following the release of a note out of Citi.

According to the note, although the broker has only retained its neutral (high risk) rating, it has lifted its price target by a sizeable 44% to $3.60.

This is broadly in line with where the Pilbara Minerals shares price is trading this afternoon.

What is the broker saying?

While Citi isn't recommending investors buy the company's shares, it also believes that it is "too early to sell". This is due to its belief that lithium prices will remain higher for longer.

The broker explained: "We expect demand to remain strong amid mild supply growth over the next six months, resulting in pricing staying higher for longer through the first half of 2022."

"We maintain Neutral/High Risk rating on PLS and believe the recent share price performance largely captures expected favorable earnings momentum," Citi has also stated.

What are other brokers saying?

The team at Macquarie Group Ltd (ASX: MQG) believe the Pilbara Minerals share price is also trading close to fair value now.

The broker recently put an outperform rating and $3.70 price target on its shares. It is predicting lithium prices to remain at record levels for the next four years, which led to its analysts making significant upgrades to their earnings estimates for Pilbara Minerals and other lithium miners.

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 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 Broker Notes

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Morgans says these ASX can rise 30% to 50%

The broker has good things to say about these shares.

Read more »

Two businessmen look out at the city from the top of a tall building.
Broker Notes

2 ASX REITs to buy in July: expert

Is it time to consider ASX REITs?

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Broker Notes

Broker tips 20% upside for these ASX utilities shares

Bell Potter sees upside in these two shares.

Read more »