ASX lithium shares have been all the rage in recent years, but have they had their run? Is it too late to buy in?
Not for at least one stock, which multiple experts still rate as a buy:
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Almost doubles production, revenue surges
Bell Potter investment advisor Christopher Watt names Pilbara Minerals Ltd (ASX: PLS) as one of his team's "preferred lithium plays".
"Spodumene concentrate production of 309,255 dry metric tonnes in the first half of fiscal year 2023 was up 83% on the prior corresponding period," Watt told The Bull.
"A surge in revenue saw a big improvement in the company's cash balance."
Argonaut Securities associate dealer Harrison Massey also rates the lithium miner as a buy.
"Pilbara MInerals remains an attractive investment in response to strong lithium demand," he said.
"Sales revenue of $2.18 billion in the first half of fiscal year 2023 was up 647% on the prior corresponding period."
Pilbara shares are now 8.4% higher than they were a year ago but along the way, the stock price has fluctuated as much as 168% upwards and 43% downwards.
The fortunes of the stock are understandably correlated to the spot price for lithium.
Both experts noted how Pilbara paid out its first dividend recently, perhaps acting as a soother for the volatility.
"The company offers a bright outlook," said Watt.
"It recently announced an inaugural fully franked dividend of 11 cents a share, supported by higher spodumene prices and volumes."
Macquarie also loves Pilbara
Watt and Massey's peers are somewhat divided on their opinion on Pilbara shares.
According to CMC Markets, eight out of 15 analysts currently rate the stock as a strong buy. However, three of the others are urging investors to sell.
The team at Macquarie shares Watt and Massey's bullishness.
The Motley Fool reported last week that those analysts had slapped on a price target of $7.50, which implies Pilbara shares could more than double from their current level.
Pilbara operates the Pilgangoora Project, which is "one of the largest hard rock lithium deposits in the world", according to The Motley Fool's James Mickleboro.
"Macquarie appears to believe recent weakness in the Pilbara Minerals share price has created an incredible buying opportunity."
