Pilbara Minerals (ASX:PLS) share price lifts following bullish broker note

This lithium miner’s shares are rising again on Monday…

| More on:
happy mining worker fortescue share price

Image source: Getty Images

The Pilbara Minerals Ltd (ASX: PLS) share price has started the week in a positive fashion.

In morning trade, the lithium miner’s shares are up over 4% to $2.14.

This latest gain means Pilbara Minerals’ shares are now up 146% since the start of the year.

Why is the Pilbara Minerals share price pushing higher again?

The Pilbara Minerals share price has been pushing higher on Monday despite there being no news out of the company.

However, potentially giving its shares a boost is increasingly positive sentiment in the battery materials sector and a bullish broker note out of Macquarie Group Ltd (ASX: MQG) last week.

In respect to the latter, according to the note, the broker has an outperform rating and $2.70 price target on the company’s shares.

Based on the latest Pilbara Minerals share price, this implies potential upside of 26% over the next 12 months.

Why is Macquarie bullish?

Macquarie is bullish on the Pilbara Minerals share price due to its positive view on lithium demand and prices and its belief that the company is well-placed to benefit thanks to its growing production.

The broker believes that the company’s staged development of its Pilgan and Ngungaju operations can support a seven-year production growth rate of around 20% per annum.

It also notes that last week the company upgraded its resource estimate after incorporating the Ngungaju project. Pilbara Minerals has increased its total Measured, Indicated and Inferred Resource by 39% to 308.9 million tonnes.

This was larger than what the broker was expecting and reinforces the Pilgangoora Lithium-Tantalum Project’s position as the world’s premier hard rock lithium operation.

All in all, Pilbara Minerals’ shares may have smashed the market this year, but this leading broker still believes they can keep rising from here.

Should you invest $1,000 in Pilbara Minerals right now?

Before you consider Pilbara Minerals, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Pilbara Minerals wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Technology Shares

Droneshield share price leaps 10% amid strong Ukrainian demand

The company's anti-drone systems are employed by militaries, law enforcement and private enterprises across the world.

Read more »

A kid and his grandad high five after a fun game of basketball.
Share Gainers

3 ASX All Ordinaries shares hitting multi-year highs on Monday

These names are outpacing major benchmarks today.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

Why Brambles, Core Lithium, Infomedia, and Qube shares are charging higher

These ASX shares have started the week strongly...

Read more »

A man sits on a couch with his arms out feeling exasperated while looking at the Costa share price going down on his laptop today
Share Gainers

Why is the ASX 200 giving back the morning’s gains on Monday?

Aussie shares are showing mixed results on Monday.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why is the Nitro Software share price rallying 5%?

Tech shares are showing signs of life again on Monday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

Here’s why the Chrysos share price is rebounding 16%

Investors are staging a comeback for the company.

Read more »

A drawing of a rocket follows a chart up, indicating share price lift
Share Gainers

Here’s why the Australian Strategic Materials share price is surging 31% today

The ASX rare earths and critical metals miner has come under selling pressure since hitting record highs in November last…

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

These were the best performers on the ASX 200 last week

These ASX 200 shares avoided the market selloff...

Read more »