The Pilbara Minerals Ltd (ASX: PLS) share price is having a difficult day.
In early afternoon trade, the lithium miner’s shares are down 9% to $2.58.
Why is the Pilbara Minerals share price sinking?
Investors have been selling down the Pilbara Minerals share price on Friday amid a broad market selloff.
The lithium industry has been hit particularly hard, with Pilbara Minerals just one of many lithium shares that are recording sizeable declines. This is being driven by a selloff on Wall Street overnight which saw risk assets hit incredibly hard.
Given how far up the risk curve lithium shares are, Friday’s session was always going to be a difficult one for them.
Nevertheless, Pilbara Minerals’ shares are still thumping the market on a 12-month basis. Since this time last year, booming lithium prices have helped drive the company’s shares almost 120% higher.
Is this a buying opportunity?
One leading broker that is likely to see the weakness in Pilbara Minerals’ shares today as a buying opportunity is Citi.
Last week the broker put a buy rating and $3.60 price target on the company’s shares. This implies potential upside of approximately 38% over the next 12 months.