The Pilbara Minerals Ltd (ASX: PLS) share price has been the best performer on the S&P/ASX 200 Index (ASX: XJO) in 2021.
Since the start of the year, the lithium miner's shares have rallied an incredible 125% higher to trade at $1.97 today.
This compares to a 9.2% gain by the ASX 200 over the same period.
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Could the Pilbara Minerals share price reach $2.80 by the end of the year?
Incredibly, despite the strong gain by the Pilbara Minerals share price this year, one leading broker believes it can rise even further.
According to a recent note out of Macquarie Group Ltd (ASX: MQG), its analysts have retained their outperform rating and $2.80 price target on the company's shares.
Based on the current Pilbara Minerals share price, this implies potential upside of 42% for investors.
In light of this, it appears as though the team at Macquarie believe there's a chance the Pilbara Minerals share price could hit $2.80 by the end of the year.
What did the broker say?
Macquarie is positive on Pilbara Minerals due to its bullish outlook for lithium prices. It notes that prices are being driven higher by strong demand in China and present upside risk to earnings estimates.
In addition to this, the broker was pleased to see the commissioning of the Ngungaju plant at Pilgangoora commence.
Macquarie suspects that Ngungaju could be up and running and producing spodumene by the third quarter of FY 2022. After which, it expects the plant to ramp up to full production by the first quarter of FY 2023.
All in all, the broker appears to believe the stars are aligning for Pilbara Minerals right now. This could make it a top option for investors looking for exposure to the lithium sector.
