Up 52% since June, can the Pilbara Minerals share price extend gains?

The Pilbara Minerals Ltd (ASX: PLS) share price has gained 52% since bouncing from lows of $2.05 on 23 June.

Shares in Pilbara Minerals now rest at $3.11 apiece, the same price as at Thursday’s close, after the ASX lithium miner posted another 4% gain in yesterday’s session.

Returns for the past 12 months are seen on the chart below.

Can the Pilbara share price continue the upside?

Pilbara’s exposure to lithium has helped its share price stretch up over the past two months. The battery metal still commands a premium, trading at A$99,471/Tonne at the time of writing.

It’s held this price range for the past two months as well, while many other commodity baskets have pared gains.

According to a Trading Economics report:

Lithium carbonate prices in China rose slightly to [A$99,471/Tonne] in the end of July, remaining near the record-high of [A$104,377/Tonne] from March and 430% higher year-on-year amid high demand and tight supply.

The gradual recovery from inactivity in Shanghai prompted a 129% annual and 63% monthly surge in new energy vehicles sales during June.

With an uptick in demand for both electric mobility and the raw material itself since June, it’s no wonder Pilbara Minerals has caught a bid lately.

The question is if it can extend these gains, however.

Brokers are positioned to say it can. According to Refinitiv Eikon data, seven out of eight analysts covering the share rate it as a buy.

Credit Suisse recently downgraded its rating to hold – the only broker to do so from this list, on a $2.40 price target.

The consensus price target from this list is $3.18 per share, suggesting a considerable amount of upside should the list be correct.

In the past 12 months, the Pilbara share price has lifted 30%.

The post Up 52% since June, can the Pilbara Minerals share price extend gains? appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price up so much more than other ASX lithium shares today?
• The Pilbara Minerals share price has powered 28% higher in a month. What’s been happening?
• Could this development further energise ASX lithium shares in FY23?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Zach Bristow 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.

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