The Pilbara Minerals Ltd (ASX: PLS) share price raced to record highs last month due to continued interest in the lithium sector.
Similarly, shares in the company's peers Orocobre Ltd (ASX: ORE) and Core Lithium Ltd (ASX: CXO) have also been on fire.
Pilbara Minerals shares are up 160% for 2021. In comparison, both the Orocobre and Core Lithium share prices are up around 120% and 140%, respectively. When pitted against the All Ordinaires Index (ASX: XAO), the index has risen a paltry 14% over the same period.
However, all three companies' share prices have dropped off slightly this month due to some profit-taking. That's not to say that these share price gains couldn't extend further in the coming months.
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What's driving Pilbara shares forward?
There are a number of reasons why the Pilbara share price has accelerated in recent times.
First and foremost, the spot price for lithium has surged over the past year. The battery making ingredient is expected to be adopted across a number of industries, notably the transitioning to electric vehicles.
Furthermore, Pilbara Minerals released its full-year results late August, highlighting a significant increase in shipments of spodumene concentrate. This was underpinned by improved market conditions and robust operational performance at its Pilgangoora Lithium-Tantalum Operations in Western Australia.
A number of brokers weighed in on the company's share price following its FY21 scorecard.
Analysts at Macquarie reduced their rating on Pilbara Minerals by 4% to $2.40. JPMorgan also cut its outlook by 4% to $2.40.
The latest broker note came from Citi, which raised its valuation on Pilbara Minerals shares by 6.9% to $2.20.
Pilbara Minerals share price snapshot
It's been a great 12 months for Pilbara Minerals shareholders, with the share price posting an all-time high of $2.46 on 11 August 2021. Long-term investors would also be reaping some serious benefits, with shares up around 1,300% since March 2020.
The Pilbara Minerals share price added another 2.26% last Friday to its last closing price of $2.26.
On valuation grounds, Pilbara Minerals commands a market capitalisation of roughly $6.6 billion, with almost 3 billion shares on hand.
