The Pilbara Minerals Ltd (ASX: PLS) share price may be trading lower on Friday but that looks unlikely to stop it from recording a strong weekly gain.
If the lithium miner’s shares end the week at $2.28, it will mean a weekly gain of 11%.
Incredibly, this will also mean Pilbara Minerals’ shares are up 160% since the start of the year.
Where next for the Pilbara Minerals share price?
Although the Pilbara Minerals share price has more than doubled in value this year, one leading broker still believes it can go higher.
According to a note out of Macquarie Group Ltd (ASX: MQG) from earlier this week, the broker has retained its outperform rating and $2.70 price target.
Based on where Pilbara Minerals shares trade currently, this suggests that they can climb a further 18% over the next 12 months.
What did the broker say?
Macquarie is bullish on Pilbara Minerals due to its very positive view on the outlook for lithium.
The latter was bolstered further this week when the company released the results of its second Battery Material Exchange (BMX) auction.
According to the release, the company intends to accept the highest bid of US$2,240/dmt for the intended 8,000dmt of cargo. On a pro rata lithia basis and inclusive of freight costs, this is approximately equivalent to a price of US$2,500/dmt (SC6.0, CIF China basis).
This was significantly higher than what Macquarie was expecting. Which it believes indicates that the positive price momentum in the lithium market is likely to continue.
As a result, the broker appears happy with its earnings forecasts, which are significantly higher than consensus estimates, backing up its price target on the Pilbara Minerals share price.
Overall, its analysts believe the company’s shares are good value at the current level.