The Pilbara Minerals Ltd (ASX: PLS) share price is having yet another positive day.
So much so, the lithium miner’s shares have hit a record high of $3.65 on Wednesday.
This means that Pilbara Minerals’ shares are now up a massive 35% in the space of a month.
Why is the Pilbara Minerals share price charging higher today?
Investors have been bidding the Pilbara Minerals share price higher on Wednesday following the release of a note out of Citi.
According to the note, although the broker has only retained its neutral (high risk) rating, it has lifted its price target by a sizeable 44% to $3.60.
This is broadly in line with where the Pilbara Minerals shares price is trading this afternoon.
What is the broker saying?
While Citi isn’t recommending investors buy the company’s shares, it also believes that it is “too early to sell”. This is due to its belief that lithium prices will remain higher for longer.
The broker explained: “We expect demand to remain strong amid mild supply growth over the next six months, resulting in pricing staying higher for longer through the first half of 2022.”
“We maintain Neutral/High Risk rating on PLS and believe the recent share price performance largely captures expected favorable earnings momentum,” Citi has also stated.
What are other brokers saying?
The team at Macquarie Group Ltd (ASX: MQG) believe the Pilbara Minerals share price is also trading close to fair value now.
The broker recently put an outperform rating and $3.70 price target on its shares. It is predicting lithium prices to remain at record levels for the next four years, which led to its analysts making significant upgrades to their earnings estimates for Pilbara Minerals and other lithium miners.
The post Pilbara Minerals (ASX:PLS) share price hits record high as Citi says ‘too early to sell’ appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pilbara Minerals right now?
Before you consider Pilbara Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- Why is the Pilbara Minerals (ASX:PLS) share price having such a stellar start to 2022?
- These were the best performing ASX 200 shares last week
- Here are the 3 most heavily traded ASX 200 shares on Friday
- Here are the 5 best performing ASX 200 mining and resource shares of 2021
- Here are the 3 most heavily traded ASX 200 shares this Thursday
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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3nf2QCz
Leave a Reply