Why is the Pilbara Minerals share price storming 6% higher on Wednesday?

The Pilbara Minerals Ltd (ASX: PLS) share price has been among the best performers on the ASX 200 index on Wednesday.

In afternoon trade, the lithium miner’s shares are up 6% to $5.10.

Why is the Pilbara Minerals share price storming higher?

There appear to have been a couple of catalysts for the rise in the Pilbara Minerals share price today.

The first is a strong showing in the lithium industry following a positive night of trade for lithium miners on Wall Street.

This has seen fellow lithium shares Allkem Ltd (ASX: AKE) and Core Lithium Ltd (ASX: CXO) also push notably higher on Wednesday.

What else is boosting its shares?

Also giving the Pilbara Minerals share price a boost today has been a broker note out of Macquarie.

According to the note, the broker has retained its outperform rating and $5.70 price target on the company’s shares. This implies potential upside of almost 12% for investors from current levels.

The note reveals that Macquarie was pleased with the company’s latest lithium auction results, which revealed a winning (pre-auction) bid of US$7,100/dmt for 5,000dmt on a 5.5% lithia basis. This is the equivalent of US$7,830/dmt on a 6% lithia basis.

Macquarie is now expecting the ramp up of Pilbara Minerals’ Ngungaju project to allow more regular sales on the online battery material exchange platform.

The post Why is the Pilbara Minerals share price storming 6% higher on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Is it time for ‘cashing in some gains’ on Pilbara Minerals shares?
• 3 ASX 200 companies among the top 10 lithium producers in the world
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 3 ASX 200 lithium shares that turned a $10,000 investment into $500,000
• Pilbara Minerals share price jumps on strong lithium auction results

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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