Top broker tips Pilbara Minerals Ltd shares to hit $1.20

The Pilbara Minerals Ltd (ASX: PLS) share price has been a solid performer during trade on Thursday.

In late afternoon trade the lithium miner’s shares are 2.5% higher at 85.5 cents.

Why are they higher?

While the resources sector as a whole is pushing notably higher today following a rise in commodity prices on the back of strong economic data out of the United States, Pilbara Minerals was given an additional boost from a broker note out of the equities desk of Macquarie Group Ltd (ASX: MQG).

According to the note, Macquarie has retained its outperform rating and $1.20 price target following the release of the results of the lithium miner’s pre-feasibility study at its flagship Pilgangoora Lithium-Tantalum Project.

This has led to the broker making a number of positive changes to its future forecasts and estimates.

Which isn’t overly surprising given the positive result of its expansion study. The release revealed that, based on the proposed 5Mtpa stand-alone mining and processing operation, the project will be a high margin project with current forecast life-of-mine revenue of $11.5 billion and life of mine Project EBITDA of $6.5 billion over an estimated 17-year mine life.

Time will tell whether the mine lives up to these estimates.

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