Macquarie is tipping another 40% upside for the Pilbara Minerals share price. Here's why

How high will the shares of this ASX lithium miner go?

Monica O'Shea

Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.

Published April 20, 2022 3:27 pm AEST

The Pilbara Minerals Ltd (ASX: PLS) share price has surged more than 100% in a year, but some brokers predict it could go higher.

The lithium miner's share price has rocketed 118% between market close on 20 April 2021 and 20 April 2022. However, in today's trade, Pilbara shares have slipped 2.75% and are currently trading at $2.83.

Let's take a look at the outlook for Pilbara Minerals.

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background. — Image source: Getty Images

Outperform rating

Macquarie has retained an outperform rating on the company's shares with a price target of $4. This is 41% more than the current share price.

The broker is optimistic about Pilbara due to high lithium prices and the company's production targets. Lithium is a critical component of batteries for electric vehicles (EV).

However, the price target of $4 is slightly less than Macquarie's recent prediction of $4.30. Macquarie dropped its price target following Pilbara Minerals' quarterly update falling below expectations.

The company mines lithium from the Pilgangoora Lithium Tantalum Project in Western Australia.

Shipments for the March quarter finished at 58,383 dry metric tonnes (dmt) after a port delay. A 20,000 dmt cargo scheduled for late March instead left Port Hedland on 7 April.

Meanwhile, Citi analysts have upgraded the Pilbara Minerals share price to a "buy" with a $3.60 price target. This equates to a 27% upside on the share price at the time of writing. Citi is optimistic lithium prices could go higher. The broker believes it could take two years for the lithium market to balance, as my Foolish colleague James reported.

Pilbara Minerals price snapshot

The Pilbara Minerals share price has gained 118% in the past 12 months but lost 11% year to date. In the past week, the company's shares have dropped about 2%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 8% over the past year.

Pilbara has a market capitalisation of about $8.4 billion based on the current share price.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.