The Mineral Resources Limited (ASX: MIN) share price is surging higher even as the ASX share market took a tumble.
Shares in the ASX miner jumped 2.1% to $33.40 in the last hour of trade when the S&P/ASX 200 Index (Index:^AXJO) tanked 1%.
Mind you, the MIN share price isn't the only one making gains today. The Rio Tinto Limited (ASX: RIO) share price added 1.1% to $117.70 while the BHP Group Ltd (ASX: BHP) share price advanced 0.3% to a more than nine-year high of $43.41.
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ASX miner is the latest "buy" rated stock
But it's the Mineral Resources share price that's in the spotlight on Friday after UBS initiated coverage on the stock with a "buy" recommendation.
It would appear that the stock is firing on all cylinders!
"MIN offers exposure to a growing mining services business and attractive commodities exposure to iron ore and lithium," said UBS.
"We see MIN at an inflection point in terms of its pipeline of growth opportunities for the commodities business with benefit to its mining services contract tonnes."
Stronger than expected iron ore price
The company's expansion of its iron ore projects is perfectly timed with the unexpectedly strong iron ore price.
The commodity is hovering near record highs of around US$150 a tonne and the near-term outlook for the steel-making mineral is bright.
But iron ore isn't the only reason to feel bullish about the stock, according to UBS.
Mineral Resources share price powering up
"MIN's 40% interest in Wodgina (750ktpa spodumene mine) and Kemerton (50ktpa hydroxide facility) offers long term exposure to the Electric Vehicle (EV) thematic that offsets the historical dominance of iron ore in the commodities portfolio," explained the broker.
"UBS forecasts sales of new EVs to reach 40% of total new car sales by 2030 with insufficient existing lithium supply to meet demand."
One also shouldn't forget that Mineral Resources partnered with a top-tier lithium player, Albemarle. This puts the ASX stock in a great position to benefit from the global vehicle electrification revolution.
More room for the MIN share price to rally
Meanwhile, Mineral Resources mining services division should be able to sustain its growth momentum. The business services the booming Western Australia resources market with mining clients ramping up production to meet the expected iron ore supply deficit.
UBS' 12-month price target on the Mineral Resources share price is $41.90 a share. This means there's still a close to 30% upside for the stock if you included dividends.
