The Mineral Resources Limited (ASX: MIN) share price is back on form on Thursday.
In afternoon trade, the mining and mining services company's shares are up 3% to $44.59.
Despite this gain, the Mineral Resources share price is still down a disappointing 18% since this time last month.
Is the Mineral Resources share price in the buy zone?
One leading broker that appears to believe the weakness in Mineral Resources' shares could be a buying opportunity is Citi.
According to a note from earlier this month, the broker has upgraded the company's shares to a buy rating with a $65.00 price target.
Based on the current Mineral Resources share price, this implies potential upside of almost 46% over the next 12 months before dividends.
And if you include the $3.37 per share fully franked dividend the broker is forecasting in FY 2022, the potential return increases to 53%.
What did the broker say?
Citi believes that Mineral Resources is set for a period of aggressive growth. This follows a strong FY 2021 and its significant investment in its operations. It feels the latter has positioned the company well for the long term.
The broker commented: "MIN had a strong FY21, driven by record iron ore shipments, delivered into high prices, and another consistent result from its services business. Revenue grew to $3.7B (up 76%) compared to $2.1B in the pcp. EBITDA grew to $1.9B compared to $765m in the pcp. MIN invested heavily in capital expenditure, expanding its iron ore operations, further developing key projects, and making additional investments to support an aggressive longer-term production growth profile."
Citi has also previously spoken positively about the company's exposure to the lithium market. This is through its Mt Marion and Wodgina operations. It notes that the latter is one of the world's largest known hard rock lithium deposits with a production life of over 30 years.
All in all, the broker appears to believe the risk/reward on offer with the current Mineral Resources share price is compelling.
