MENU

Why the Mineral Resources Limited share price rocketed 13% today

One of the biggest movers on the local market today has been the Mineral Resources Limited (ASX: MIN) share price.

In morning trade the shares of the miner and mining services company have rocketed 13% to $11.20.

What happened?

With no news out of the company since last month, today’s gain is likely to be attributable to a research note out of investment bank Deutsche Bank.

According to the note, its analysts have upgraded the company’s shares to a buy rating and increased their price target from $10.80 to $12.00.

Deutsche appears to have been very impressed with the company’s Wodgina lithium mine in Western Australia following a site visit.

Mineral Resources looks set to become a key player in the industry in the future thanks to Wodgina. By FY 2018 the company is expected to produce 100,000 tonnes per annum according to the report.

Should you invest?

There’s no denying that Mineral Resources has a potentially lucrative asset in Wodgina. This and the expected strong demand for lithium due to the meteoric rise in electric vehicles and energy storage, could make Mineral Resources a good investment option today.

However, my first pick in the industry remains Galaxy Resources Limited (ASX: GXY). I believe its Mt Cattlin mine and Sal de Vida asset in Argentina give it the edge over Mineral Resources and Orocobre Limited (ASX: ORE).

Alternatively, if the resources sector is too high-risk for your liking then these explosive growth shares could be far better options than Mineral Resources in my opinion.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro owns shares in Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.