It has been yet another positive day for the Pilbara Minerals Ltd (ASX: PLS) share price on Friday.
In morning trade, the lithium miner's shares are up 5% to $2.32.
This means the Pilbara Minerals share price is now up 166% since the start of the year.
Why is the Pilbara Minerals share price charging higher?
Investors have been bidding the Pilbara Minerals share price higher today despite there being no news out of the company.
However, a number of lithium shares are rising along with Pilbara Minerals today. This appears to have been driven by bullish sentiment in the industry thanks to rising lithium demand and prices.
For example, at the time of writing, the Mineral Resources Limited (ASX: MIN) share price is up 3.5%, the Orocobre Limited (ASX: ORE) share price is up 4.5%, and the Vulcan Energy Resources Ltd (ASX: VUL) share price is up 6%.
Where next for its shares?
The good news for investors is that one leading broker believes Pilbara Minerals' shares can still go higher from here.
Last week Macquarie retained its outperform rating and lifted its price target by 35% to $2.70. Based on the current Pilbara Minerals share price, this implies potential upside of 16.5% over the next 12 months.
Macquarie is positive on the company due to its long term production growth potential. It estimates that Pilbara Minerals' production could grow at an average of 20% per annum over the next seven years thanks to staged developments.
It feels this puts the company in a great position to benefit from rising demand and strong prices for the battery making material.
So, even though Pilbara Minerals' shares are up 166% this year, Macquarie doesn't appear to believe it is too late for investors to jump in.
