The Mineral Resources Limited (ASX: MIN) share price has been on form in recent weeks.
Since this time last month, the mining and mining services company's shares have risen a sizeable 27%.
This has been driven by rising iron ore and lithium prices, which Mineral Resources has exposure to through its world class portfolio of mining operations.
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Can the Mineral Resources share price keep rising?
Despite its recent gains, one leading broker still sees plenty of value in the Mineral Resources share price.
According to a note out of Goldman Sachs, its analysts have upgraded the company's shares to a buy rating and lifted their price target by a sizeable 42% to $70.80.
Based on the current Mineral Resources share price of $59.29, this implies potential upside of 19.4% for investors over the next 12 months.
Why did Goldman upgrade the company's shares?
Goldman made the move in response to rising iron ore and lithium prices and changes to its volume and growth assumptions.
The broker explained its bullish view, stating:
"MIN has a 20yr track record of delivering high return growth and value creation across mining services, iron ore and lithium in Western Australia. MIN's strategy has always been to increase earnings from their high margin annuity style long life mining services business which generates c. 30% EBITDA margins.
The company is about to commence another rapid growth phase in WA with the construction of two major greenfield iron ore projects with combined 80-90Mtpa of production capacity (MIN's share c. 25Mtpa), >1Mtpa increase in lithium spodumene (MIN's share ~600ktpa) with the ramp-up of the Wodgina mine and expansion of the Mt Marion mine and ~100ktpa of Lithium hydroxide or carbonate (MIN's total share 40-50kt LCE), ongoing growth in external mining services volumes (10-15% or 20-40Mtpa) from existing large Pilbara customers (RIO, BHP, Hancock) and internal (>50% or >150Mtpa), and potential gas production from the Lockyer Deep onshore discovery in the Perth basin (MIN 80%) in 2024/2025."
