What can stop the Pilbara Minerals Ltd (ASX: PLS) share price?
That might be the question on many investors' lips today. The Pilbara share price continues to rip higher into record territory. The ASX 200 lithium share has hit yet another all-time high this Tuesday, the latest in what is becoming a long line.
Today, Pilbara shares are presently trading for $4.78 each, up a very robust 4.7% at present. That is right on the company's new high watermark. If we backtrack just a month, we'll find the Pilbara share price at a far lower $3.23.
This means the company has gained a rather extraordinary 48% over just the past month alone. Pilbara shares are now up 36% year to date and a whopping 117.5% over the past 12 months.
Runaway train could be an apt description.
So what's going on here?
Image source: Getty Images
Why does the Pilbara share price keep shooting the lights out with new record highs?
Well, it appears this move reflects what has become a very optimistic trend amongst ASX investors on the future of lithium.
On the weekend, my Fool colleague James covered a sunny outlook on Pilbara shares from broker Macquarie. Macquarie has an outperform rating on Pilbara shares right now, with a 12-month share price target of $5.60.
Just yesterday, we also looked at another broker's optimism regarding the lithium price itself. Barranjoey reckons the price of lithium could surge by up to 86% over the next two years, thanks to tight supplies of the future-facing metal.
The broker has reportedly raised its earnings per share (EPS) estimates for Pilbara by up to 44% for FY23 and up to 120% for FY24.
Perhaps there's a bit of good old-fashioned 'fear of missing out' going on with the Pilbara share price as well, judging by the steep rise in the company's shares over such a short space of time.
Whatever the reasons, it has certainly been a month to remember for Pilbara shares– and investors.
At the current Pilbara Minerals share price, this ASX 200 lithium share has a market capitalisation of $14.23 billion.
