What’s driving the Mineral Resources (ASX:MIN) share price higher today?

Miner with thumbs up at mine

The Mineral Resources Ltd (ASX: MIN) share price is pushing upwards on Wednesday afternoon. This comes despite the mining services company keeping a quiet front on the news releases this week.

At the time of writing, Mineral Resources shares are up 3.19% to $51.71 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.24% to 7,337.6 points.

Let’s take a closer look and see what’s driving Minerals Resources shares higher today.

A positive outlook on Mineral Resources shares 

Investors appear to be upbeat about the company’s prospects, sending the Mineral Resources share price to a 3-month high.

While the company hasn’t released any news over the last few days, it did receive attention from a couple of brokers today.

Analysts at Macquarie raised its 12-month price target by 10% to a bullish $79 per share.

Following suit, Swiss investment house, UBS also lifted its outlook on Mineral Resources shares by 20% to $54.15. Based on the current share price, this implies an upside of almost 5% for investors.

The price of iron ore has rallied since hitting a 52-week low of US$91.98 last month. Currently, the steel-making ingredient is fetching for US$113.64 per tonne, an improvement of 23% over the short time period.

In addition, the price of lithium carbonate has soared to 242,500 Chinese yuan per metric tonne (roughly A$53,245). This represents an increase of close to 80% in the past year.

Demand for the electric vehicle market has accelerated in recent times following a global push by world governments to lower carbon emissions. To put that into perspective, electric vehicle deliveries in China are expected to total 3 million units this year, more than double of last year’s. Furthermore, this is anticipated to reach 5 million sales in 2022 alone.

Mineral Resources share price snapshot

Over the past 12 months, Mineral Resources shares have gone strength to strength, rising 50%. In 2021 alone, its shares are travelling 40% higher on the back of rebounding iron ore and lithium prices.

On valuation grounds, Mineral Resources presides a market capitalisation of roughly $9.82 billion, with approximately 188.85 million shares outstanding.

The post What’s driving the Mineral Resources (ASX:MIN) share price higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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