Pilbara Minerals (ASX:PLS) share price hits record high as Citi says 'too early to sell'

This lithium share is having another strong day…

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The Pilbara Minerals Ltd (ASX: PLS) share price is having yet another positive day.

So much so, the lithium miner's shares have hit a record high of $3.65 on Wednesday.

This means that Pilbara Minerals' shares are now up a massive 35% in the space of a month.

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

Image source: Getty Images

Why is the Pilbara Minerals share price charging higher today?

Investors have been bidding the Pilbara Minerals share price higher on Wednesday following the release of a note out of Citi.

According to the note, although the broker has only retained its neutral (high risk) rating, it has lifted its price target by a sizeable 44% to $3.60.

This is broadly in line with where the Pilbara Minerals shares price is trading this afternoon.

What is the broker saying?

While Citi isn't recommending investors buy the company's shares, it also believes that it is "too early to sell". This is due to its belief that lithium prices will remain higher for longer.

The broker explained: "We expect demand to remain strong amid mild supply growth over the next six months, resulting in pricing staying higher for longer through the first half of 2022."

"We maintain Neutral/High Risk rating on PLS and believe the recent share price performance largely captures expected favorable earnings momentum," Citi has also stated.

What are other brokers saying?

The team at Macquarie Group Ltd (ASX: MQG) believe the Pilbara Minerals share price is also trading close to fair value now.

The broker recently put an outperform rating and $3.70 price target on its shares. It is predicting lithium prices to remain at record levels for the next four years, which led to its analysts making significant upgrades to their earnings estimates for Pilbara Minerals and other lithium miners.

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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