The Pilbara Minerals Ltd (ASX: PLS) share price was a relatively positive performer in April.
Despite the release of a quarterly update that fell short of expectations, investors bid the lithium minerâs shares 4.1% higher for the month.
Though, it is worth noting that its shares are still down almost 20% over the last six months.
Why did the Pilbara Minerals share price have a strong month?
There were a couple of reasons why investors were bidding Pilbara Minerals shares higher last month.
One was the Liontown Resources Ltd (ASX: LTR) takeover approach from Albemarle Corp (NYSE: ALB) at the end of the previous month which gave the whole industry a major lift.
Especially given that Morgans has tipped Pilbara Minerals as a lithium miner that could also receive a takeover approach. It commented:
PLS remains one of the few independent lithium producers with a globally significant resource. With assets in operation it would offer an acquirer immediate exposure to spodumene and hydroxide.
What else?
Another thing that also appears to have given the Pilbara Minerals share price a boost involves Albemarle again.
Last month, the government of Chile announced plans to nationalise its lithium industry. This shock move will see the government eventually take control of the lithium operations of miners such as Albemarle and SQM.
This appears to have led to some investors selling down their holdings in Albemarle and SQM and loading up on miners in safe jurisdictions like Australia.
Where next for its shares?
The good news is that despite its aforementioned quarterly update falling short of expectations, a number of brokers remain very positive and see a lot of value in the Pilbara Minerals share price.
Macquarie, for example, currently has an outperform rating and $7.70 price target on its shares. This suggests potential upside of almost 90% for investors over the next 12 months.
The post How did the Pilbara Minerals share price perform in April? appeared first on The Motley Fool Australia.
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More reading
- Here are the 3 most heavily traded ASX 200 shares on Monday
- ASX lithium shares: Short-term pain for long-term gain?
- 5 things to watch on the ASX 200 on Monday
- Here’s what brokers are saying about Pilbara Minerals shares
- Top brokers name 3 ASX shares to buy next week
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.
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