This ASX 200 lithium stock could be THE ONE to buy right now

ASX lithium shares have been all the rage in recent years, but have they had their run? Is it too late to buy in?

Not for at least one stock, which multiple experts still rate as a buy:

Almost doubles production, revenue surges

Bell Potter investment advisor Christopher Watt names Pilbara Minerals Ltd (ASX: PLS) as one of his team’s “preferred lithium plays”.

“Spodumene concentrate production of 309,255 dry metric tonnes in the first half of fiscal year 2023 was up 83% on the prior corresponding period,” Watt told The Bull.

“A surge in revenue saw a big improvement in the company’s cash balance.”

Argonaut Securities associate dealer Harrison Massey also rates the lithium miner as a buy.

“Pilbara MInerals remains an attractive investment in response to strong lithium demand,” he said.

“Sales revenue of $2.18 billion in the first half of fiscal year 2023 was up 647% on the prior corresponding period.”

Pilbara shares are now 8.4% higher than they were a year ago but along the way, the stock price has fluctuated as much as 168% upwards and 43% downwards.

The fortunes of the stock are understandably correlated to the spot price for lithium.

Both experts noted how Pilbara paid out its first dividend recently, perhaps acting as a soother for the volatility.

“The company offers a bright outlook,” said Watt.

“It recently announced an inaugural fully franked dividend of 11 cents a share, supported by higher spodumene prices and volumes.”

Macquarie also loves Pilbara

Watt and Massey’s peers are somewhat divided on their opinion on Pilbara shares.

According to CMC Markets, eight out of 15 analysts currently rate the stock as a strong buy. However, three of the others are urging investors to sell.

The team at Macquarie shares Watt and Massey’s bullishness. 

The Motley Fool reported last week that those analysts had slapped on a price target of $7.50, which implies Pilbara shares could more than double from their current level.

Pilbara operates the Pilgangoora Project, which is “one of the largest hard rock lithium deposits in the world”, according to The Motley Fool’s James Mickleboro.

“Macquarie appears to believe recent weakness in the Pilbara Minerals share price has created an incredible buying opportunity.”

The post This ASX 200 lithium stock could be THE ONE to buy right now appeared first on The Motley Fool Australia.

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More reading

• Could buying Pilbara Minerals shares under $4 make me rich?
• Analysts say 2 of these ASX lithium shares can double in value
• Here are the top 10 ASX 200 shares today
• The first-ever Pilbara Minerals dividend is being paid today. Here’s what to expect
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tony Yoo 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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