The Mineral Resources Limited (ASX: MIN) share price finished in the green on Friday, adding to its impressive gains over the past week.
At the closing bell, the company’s shares were up 0.83% to $59.82 apiece.
This means they have surged by more than 10% over the past five days of trading.
What do the experts think about Mineral Resources?
Investors appear to be upbeat on the company’s prospects, sending the Mineral Resources share price higher.
While the company hasn’t released any news over the last few days, it did receive attention from one broker recently.
The team at Credit Suisse commenced its coverage of Mineral Resources with an initial outperform rating.
As such, the broker placed a bullish $73.00 price target on the company’s shares. Based on the current price, this implies an upside of roughly 22% for investors.
Credit Suisse is confident in the top-tier miner due to its large exposure to iron ore and lithium.
The company has a pipeline of mining projects for the coming years and is expected to grow further.
As my Foolish colleague James pointed out, analysts are forecasting the company to pay a dividend of 86 cents per share in FY22. However, this is anticipated to significantly ramp up to $4.41 per share in the following financial year.
The price of iron ore has rallied since hitting a 52-week low of US$91.98 in November 2021. Currently, the steel-making ingredient is fetching US$131.92 per tonne, an improvement of more than 43% over the six months.
In addition, the price of lithium carbonate has soared to 457,500 Chinese yuan per metric tonne (roughly A$97,000). This represents an increase of close to 420% in the past year.
Demand for electric vehicles has accelerated in recent times following a global push by world governments to low carbon emissions. To put that into perspective, electric vehicle deliveries in China are expected to reach five million units this year. This is in comparison to the three million sales achieved last year.
Mineral Resources share price snapshot
An uptick in iron ore and lithium prices since November 2021 has provided robust margins for the company.
However, the Mineral Resources shares price has predominantly moved in circles in 2022 to post a gain of around 6%.
On valuation grounds, Mineral Resources presides a market capitalisation of roughly $11.50 billion.
The post The Mineral Resources share price leapt 10% this week. Too late to buy? appeared first on The Motley Fool Australia.
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More reading
- Top brokers name 3 ASX dividend shares to buy today
- Top brokers name 3 ASX shares to buy today
- Lighting up the market: ASX lithium stocks surge again on Tuesday
- ASX 200 midday update: Brambles takeover talks end, resources shares charge higher
- Do any ASX lithium stocks pay dividends?
Motley Fool contributor Aaron Teboneras 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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