The Mineral Resources Ltd (ASX: MIN) share price is edging higher in morning trade, up 0.46%.
Mineral Resources shares closed on Friday at $61.30 and are currently trading for $61.58.
But that's still 34.8% below the new price target issued by Macquarie Group Ltd (ASX: MQG).
Why does Macquarie have an outperform rating on MIN?
Mineral Resources, if you're not familiar, is a mining services provider. The company has a strong focus on the iron ore and hard-rock lithium sectors in Western Australia.
And alongside soaring commodity prices, the Mineral Resources share price has soared 37% over the past month.
However, Macquarie believes there are more gains to come, with an outperform rating on the company.
According to the broker (as quoted by The Australian Financial Review):
The accelerated restart of Wodgina train 1&2 was ahead of our prior estimates. A combination of capital investment and product mix change increase Mt Marion production capacity to 900ktpa [kilo tonnes per annum]. Higher spodumene production from Mt Marion has translated to double-digit upgrades to our medium-term earnings forecasts for MIN.
Commenting on the company's lithium business update last week, Mineral Resources managing director Chris Ellison said:
For some time now the world has seen extraordinary demand for lithium, driven by the strength of the electric vehicle market. This demand has resulted in a substantial increase in lithium prices, with pricing expected to remain strong for the rest of this decade…
With a world-class portfolio of highest-quality, long-life lithium assets in a Tier 1 mining jurisdiction, we are well positioned to capitalise on the continued growth of the global electric vehicle market.
Macquarie has an $83 target on the Mineral Resources share price.
Mineral Resources share price snapshot
2022 has seen some big ups and downs for Mineral Resources shareholders.
Despite the big 37% boost over the past month, the Mineral Resources share price is 'only' up 10% year-to-date. Though that does handily beat the 0.96% gain posted by the S&P/ASX 200 Index (ASX: XJO) so far this year.
Over the past 12 months, Mineral Resources shares are up 50%.
