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Up 118%! Are PLS shares now a buy, hold or sell?

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PLS Group Ltd (ASX: PLS) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock– formerly known as Pilbara Minerals – closed yesterday trading for $4.93. In late morning trade on Wednesday, shares are swapping hands for $4.96 each, up 0.6%.

For some context, the ASX 200 is down 0.4% amid renewed concerns over the enduring conflict in the Middle East.

Today’s outperformance is par for the course for the Aussie lithium producer, with PLS shares up 117.7% since this time last year, smashing the 1.6% one-year gains posted by the benchmark index.

Some of that strong performance has been fuelled by the 79% increase in global spodumene (a lithium bearing ore) prices. Though the miner has hardly been sitting idle.

So, with PLS having turned $10,000 into $21,770 in the last 12 months, is the ASX lithium stock still a good buy today?

PLS shares: Buy, hold, or sell?

Dolphin Partners Financial Services’ Arthur Garipoli recently ran his slide rule over the lithium miner (courtesy of The Bull).

“This high-quality pure play lithium producer recently delivered a solid June quarter report in fiscal year 2026,” he said.

“Sales were up 28% compared to the March quarter and group revenue was up 31%,” Garipoli noted.

PLS released those results on 30 July, with shares closing up 2.7% on the day. The revenue boost Garipoli mentioned saw the company report $743 million in revenue for the three months, with sales volumes of 249,900 tonnes.

While Garipoli sounded a positive note on the miner, including renewed dividend potential, he issued a hold recommendation on PLS shares for now.

According to Garipoli:

The company has benefited from rising spodumene prices and sustains a solid balance sheet. Restarting the Ngungaju processing plant is expected to materially lift sales into full year 2027. Speculation exists that PLS may resume paying dividends following stronger than expected cash generation in full year 2026.

In 2023, PLS paid two fully-franked dividends, totalling 25 cents per share. Those passive income payouts were suspended in 2024 amid slumping lithium prices.

What’s ahead for the ASX 200 lithium stock?

Looking to what could impact PLS shares in the months ahead, the company provided FY 2027 spodumene production guidance in the range of 1.03 million to 1.10 million tonnes, with growth spurred by the ramp up at the miner’s Ngungaju plant.

Costs are also expected to rise, with PLS forecasting FY 2027 unit operating costs (FOB) between $575 to $625 per tonne.

PLS also plans to increase its investment spend, forecasting full-year capital expenditure between $620 million to $685 million.

The post Up 118%! Are PLS shares now a buy, hold or sell? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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