The Pilbara Minerals Ltd (ASX: PLS) share price outperformed significantly last month, launching 4% higher to close May trading at $4.41.
Could the S&P/ASX 200 Index (ASX: XJO) lithium favourite keep soaring into the future?
Let's take a closer look at whether Pilbara Minerals shares could be a winning June buy. It's certainly off to a good start, with the Pilbara Minerals share price trading at $4.47 at the close on Friday.
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What's been driving Pilbara Minerals shares this year?
This year has been an exciting one so far for those invested in Pilbara Minerals shares.
The big news was, of course, the company's maiden dividend, announced in February. The lithium producer paid investors 11 cents per share, fully franked, in late March.
In the meantime, the stock has roared 24% higher year to date, seemingly helped by merger and acquisition (M&A) activity within its space.
Liontown Resources Ltd (ASX: LTR) batted away a $2.50 per share takeover bid from industry giant Albemarle while Allkem Ltd (ASX: AKE) is gearing up to merge with Livent.
Its gains have also come despite a pullback in lithium prices. The company revealed its realised spodumene concentrate sales price fell 15% in the March quarter to US$4,840 per dry metric tonne.
So, with plenty of excitement already felt for Pilbara Minerals shares in 2023, could the sixth month be a good time to jump on board?
Could the ASX 200 lithium stock be a winning June buy?
Well, plenty of brokers are bullish on the stock.
Macquarie is among them, my Fool colleague James reports. It's tipped the stock to lift to $7.70 – a potential 75% upside.
Not to mention, the company expects lithium prices to improve once more in the second half of 2023. Thus, June might be a good time to get on board ahead of an anticipated increase in earnings.
Commenting on the company's outlook in April, CEO and managing director Dale Henderson said:
Pilbara Minerals remains bullish on the at the long-term outlook for the market, and remains committed to our expansion and getting on with the job of developing this incredible tier 1 asset [the Pilgangoora Project] and enjoying, hopefully, strong margins from many quarters and many years to come.
However, not all brokers agree the stock is worth buying in June.
Goldman Sachs has a neutral rating and a $4.10 price target on Pilbara Minerals shares – a potential 7% downside.
