The Pilbara Minerals Ltd (ASX: PLS) share price plunged in June, but could July be a better month?
The ASX lithium share price tumbled from $2.95 to $2.29 between market close on 31 May and 30 June, down 22%. At the time of writing, the company's share price is down 0.88% at $2.24. For perspective, S&P/ASX 200 Materials Index (ASX: XMJ) is also down 2.73% so far today.
So what could be in store for the Pilbara Minerals share price in July?
Pilbara share price outlook
Pilbara is a lithium producer focused on the Pilgangoora Project near Port Headland in Western Australia.
The company was not the only ASX lithium share to tumble in June. Lake Resources NL (ASX: LKE) fell 49% between market close on 31 May and 30 June. Over the same period, the Core Lithium Ltd (ASX: CXO) share price also lost 31% and Sayona Mining Ltd (ASX: SYA) fell nearly 32%.
However, a recent broker note from Ord Minnett is predicting better times ahead for Pilbara Minerals. The broker placed a $4.25 price target on the lithium producer's shares with a buy rating. This is almost 90% more than the current share price at the time of writing.
The broker is optimistic on future lithium prices after Pilbara's latest offer at a Battery Material Exchange (BMX) auction.
On 23 June, Pilbara advised it accepted a bid worth US$7,000 per dmt [dry metric tonne] in advance of an auction on the BMX.
Meanwhile, Macquarie has also tipped significant upside for the Pilbara share price. Analysts have placed a $3.90 price target on the shares and kept an outperform rating. The broker was also impressed with Pilbara's auction result and sees lithium prices remaining strong.
On 27 June, Pilbara advised its quarterly production jumped by an estimated 54% compared to the March quarter to 123-127,000 dmt.
Earlier in the month, Pilbara also announced Dale Henderson will be the company's new managing director and CEO.
The Pilbara share price ended June on a high, jumping nearly 12% between 23 and 30 June. Pilbara is planning another BMX auction in the second week of July.
Share price snapshot
The Pilbara share price has exploded nearly 51% in a year but year to date, it has pulled back 30%.
The company has a market capitalisation of about $6.6 billion based on its current share price.
