The Mineral Resources Limited (ASX: MIN) share price has been flying in recent weeks.
Since this time last month, the mining and mining services company's shares have risen a sizeable 25%.
Can the Mineral Resources share price keep rising?
The good news for investors is that one leading broker doesn't believe it is too late to invest.
According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company's shares by 21% to $74.35.
Based on the current Mineral Resources share price of $60.35, this implies potential upside of 23% for investors over the next 12 months. This potential return increases to approximately 24% including dividends.
What did the broker say?
Bell Potter made the move in response to Mineral Resources' decision to increase its lithium production plans materially due to unprecedented demand.
The broker highlights that this means that the company will be a major player in the lithium space, with production greater than Allkem Ltd (ASX: AKE) in 2022.
It commented: "MIN's expansion and restart plans are in response to strong market demand for lithium products. MIN's share of the expanded equivalent 6% spodumene concentrate (650 ktpa) equals around 100 ktpa of LCE (by lithium units). For context, Allkem Ltd's (AKE) targeted FY22 production capacity is 50 ktpa LCE (on a 100%), and FY26 capacity is 145-to158 ktpa LCE."
All in all, the broker believes the Mineral Resources share price is great value at the current level and sees a number of catalysts to taking it even higher.
It said: "We consider that MIN maintains an excellent portfolio of operating and development minerals assets, with a number of outstanding catalysts to provide additional news flow throughout the year ahead, including announcements relating to the conclusion of renegotiating the MARBL JV (and the anticipated increased downstream lithium processing capacity), and, iron ore project development in the Pilbara."
