Where could the Pilbara Minerals share price be in 12 months?

Will the market be kind to this lithium giant? Let's see what analysts are expecting.

| More on:
A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pilbara Minerals Ltd (ASX: PLS) share price has just endured another red day.

The lithium miner's shares ended the session 2.5% lower at $3.32.

This latest decline means that that lithium giant's shares are now down 30% over the last 12 months.

It also leaves them trading within sight of their 52-week low of $3.10 and a long way from their 52-week high of $5.43.

But what about the next 12 months? Could things be better for the Pilbara Minerals' share price and its shareholders? Let's find out.

Where could the Pilbara Minerals share price be in 12 months?

Firstly, the main driver of the company's share price performance from here will be the lithium price.

If the price of the white metal rebounds strongly, then its shares could hurtle higher. However, the general consensus is that lithium will be staying lower for the foreseeable future.

As a result, the broker community is feeling reasonably apathetic about the Pilbara Minerals share price right now.

For example, in the bear corner, Goldman Sachs is currently tipping its shares as a sell with a $2.80 price target. This implies potential downside of almost 16% for investors from current levels.

UBS is feeling a touch more bearish and has a sell rating and $2.70 price target on its shares, which suggests that they could fall almost 19%.

But there's reason for optimism.

Value could be emerging

The Pilbara Minerals share price has fallen so much recently that some neutral brokers are now seeing a lot of value emerging. This could be good news for its shares over the next 12 months.

One of those brokers is Macquarie. Last month, its analysts reaffirmed their neutral rating and $4.20 price target on the company's shares.

This price target implies potential upside of almost 27% for investors from current levels. That's better than the potential returns on offer with some buy-rated shares!

It is a similar story at Morgans. Although the broker downgraded the Pilbara Minerals share price to a hold rating in April, its price target of $4.10 is now materially higher than where its shares trade. So much so, investors would generate a 23% return if its shares were to rise to that level.

Unfortunately, it is impossible to say with certainty where the lithium giant's share price will be in 12 months. But there's certainly potential for it to be meaningfully higher than where it trades today. But conversely, as you can see above, it could also be materially lower. Time will ultimately tell which brokers have made the right call.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Materials Shares

How much upside does Macquarie forecast for Pilbara Minerals shares?

Is the broker bullish or bearish on this lithium giant? Let's find out.

Read more »

Group of miners working at a coal mine with one smiling and holding up a piece of coal.
Materials Shares

How much upside does Macquarie project for South32 shares?

Is this miner's luck about to change?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Materials Shares

Down but not out: Can these ASX mining shares bounce back?

Here’s what one broker is predicting for Australia’s largest mining companies. 

Read more »

Broker analysing the share price.
Materials Shares

Buy, hold, or sell? Broker's verdict on 3 ASX 200 materials shares

Materials was one of four market sectors that weakened in overall value in FY25.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why is this ASX mining stock crashing 14% today?

Let's see what is causing investors to hit the sell button on Monday.

Read more »

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

$10,000 invested in BHP shares in FY25 is now worth

Did the Big Australian outperform or underperform during the last financial year?

Read more »

A male investor sits at his desk pondering at his laptop screen with a piece of paper in his hand.
Share Market News

Why did Macquarie just downgrade Liontown resources shares?

Here’s what the broker had to say about this materials company. 

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why did Macquarie downgrade Mineral Resources shares?

The broker is no longer bullish on this mining and mining services company.

Read more »