Mineral Resources Ltd (ASX: MIN) shares have been sold off in recent weeks.
So much so, the mining and mining services company's shares are down 25% since this time last month.
This leaves the Mineral Resources share price trading within sight of a 52-week low and some distance away from recent highs.
While this is disappointing for shareholders, is it a buying opportunity for the rest of us?
One leading broker appears to believe it could be and is tipping big returns for investors over the next 12 months.
Are Mineral Resources shares dirt cheap?
According to a note out of Bell Potter, its analysts have reaffirmed their buy rating and $84.00 price target on the company's shares.
Based on its current share price of $56.06, this implies potential upside of approximately 50% for investors over the next 12 months.
To put that into context, a $10,000 investment would turn into approximately $15,000 if Bell Potter is on the money with its recommendation.
Why is the broker still bullish?
Bell Potter continues to rate the company very highly due partly to the diverse nature of its operations. It commented:
Based in Western Australia (WA), Mineral Resources is a mining services company, which holds a portfolio of mining operations and development projects spanning a wide range of business activities. MIN's services business encompasses construction, mining, crushing, processing, and haulage, as well as a range of other services. MIN operates two Iron Ore export businesses in WA, the Yilgarn Hub, and the Utah Point Hub, with combined capacity of ~20Mtpa. MIN holds direct interests in two lithium mines (Mount Marion and Wodgina) in WA. MIN's lithium business is one focus of its expansion efforts, in response to increasing demand for lithium products.
The broker also highlights its strong production growth outlook as a reason to buy. It said:
In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN's earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.
Overall, Bell Potter appears to believe that this makes Mineral Resources shares worth considering after recent weakness.
