The Pilbara Minerals Ltd (ASX: PLS) share price has started the week in a positive fashion.
In morning trade, the lithium miner’s shares are up over 4% to $2.14.
This latest gain means Pilbara Minerals’ shares are now up 146% since the start of the year.
Why is the Pilbara Minerals share price pushing higher again?
The Pilbara Minerals share price has been pushing higher on Monday despite there being no news out of the company.
However, potentially giving its shares a boost is increasingly positive sentiment in the battery materials sector and a bullish broker note out of Macquarie Group Ltd (ASX: MQG) last week.
In respect to the latter, according to the note, the broker has an outperform rating and $2.70 price target on the company’s shares.
Based on the latest Pilbara Minerals share price, this implies potential upside of 26% over the next 12 months.
Why is Macquarie bullish?
Macquarie is bullish on the Pilbara Minerals share price due to its positive view on lithium demand and prices and its belief that the company is well-placed to benefit thanks to its growing production.
The broker believes that the company’s staged development of its Pilgan and Ngungaju operations can support a seven-year production growth rate of around 20% per annum.
It also notes that last week the company upgraded its resource estimate after incorporating the Ngungaju project. Pilbara Minerals has increased its total Measured, Indicated and Inferred Resource by 39% to 308.9 million tonnes.
This was larger than what the broker was expecting and reinforces the Pilgangoora Lithium-Tantalum Project’s position as the world’s premier hard rock lithium operation.
All in all, Pilbara Minerals’ shares may have smashed the market this year, but this leading broker still believes they can keep rising from here.
The post Pilbara Minerals share price lifts following bullish broker note appeared first on The Motley Fool Australia.
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More reading
- Top brokers name 3 ASX shares to buy next week
- Here are the 3 heaviest traded ASX 200 shares this Friday
- Here are the 3 heaviest trading ASX 200 shares on Thursday
- Is the party only just getting started for ASX lithium shares?
- Why these seasoned investors are watching the Pilbara (ASX:PLS) share price
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 Bruce Jackson.
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