Up 200%: Can Mineral Resources shares keep rising?

Mineral Resources Ltd (ASX: MIN) shares are a popular option for investors looking for exposure to the mining sector.

And thanks to strong commodity prices, they have been a successful investment.

Over the past 12 months, the mining and mining services company’s shares are up over 200%.

The good news is that Bell Potter believes the run can continue.

What is the broker saying?

Bell Potter is positive on the company’s outlook and believes the strong operational momentum could continue as management looks to take advantage of robust lithium market sentiment and prices. It explains:

MIN’s FY26 guidance midpoints imply SC6e sales down 13% QoQ at Wodgina and 15% QoQ at Mt Marion. We see upside, with strong operational momentum from the prior quarter continuing as the company capitalises on robust lithium market sentiment and prices. We expect Onslow iron ore sales to improve 17% QoQ following an inventory build in the prior cyclone-affected quarter.

Speaking of which, Bell Potter has boosted its lithium price forecasts to reflect strong demand forecasts. It said:

We have compared medium term lithium supply restarts and greenfield projects against expected demand. While Australian-based projects could add up to 590ktpa LCE (unrisked) by 2030, we view this as highly optimistic given permitting and development lead-times; and we don’t expect RoW supply will be as forthcoming.

Demand projections suggest an additional +1Mtpa LCE will be required over the same timeframe. Our spodumene concentrate (6% Li2O basis) price outlook is upgraded by 11% for the remainder of 2026, 7% in 2027 and 17% in 2028. We have also lifted our long-term spodumene concentrate price to US$1,500/t (real, previously US$1,400/t).

This has seen the broker make meaningful earnings upgrades for FY 2026, FY 2027, and FY 2028.

Mineral Resources shares tipped to rise

According to the note, the broker has retained its buy rating on Mineral Resources shares with an improved price target of $83.00 (from $80.50).

Based on its current share price of $71.42, this implies potential upside of 16% for investors over the next 12 months.

And while no dividends are expected in FY 2026, the broker believes they could return in FY 2027.

Commenting on its buy recommendation, Bell Potter said:

Completion of the US$765m MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with cash flows from persistent iron ore and lithium market prices. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is well positioned to execute its next phase of growth with potential to reinstate fully franked dividends.

The post Up 200%: Can Mineral Resources shares keep rising? appeared first on The Motley Fool Australia.

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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.