Why is the Pilbara Minerals share price sinking 9% today?

Scared, wide-eyed man in pink t-shirt with hands covering mouth

Scared, wide-eyed man in pink t-shirt with hands covering mouth

The Pilbara Minerals Ltd (ASX: PLS) share price is having a difficult day.

In early afternoon trade, the lithium miner’s shares are down 9% to $2.58.

Why is the Pilbara Minerals share price sinking?

Investors have been selling down the Pilbara Minerals share price on Friday amid a broad market selloff.

The lithium industry has been hit particularly hard, with Pilbara Minerals just one of many lithium shares that are recording sizeable declines. This is being driven by a selloff on Wall Street overnight which saw risk assets hit incredibly hard.

Given how far up the risk curve lithium shares are, Friday’s session was always going to be a difficult one for them.

Nevertheless, Pilbara Minerals’ shares are still thumping the market on a 12-month basis. Since this time last year, booming lithium prices have helped drive the company’s shares almost 120% higher.

Is this a buying opportunity?

One leading broker that is likely to see the weakness in Pilbara Minerals’ shares today as a buying opportunity is Citi.

Last week the broker put a buy rating and $3.60 price target on the company’s shares. This implies potential upside of approximately 38% over the next 12 months.

The post Why is the Pilbara Minerals share price sinking 9% today? 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 over 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 January 13th 2022

More reading

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 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/lcLMzWb

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s