The Mineral Resources Limited (ASX: MIN) share price has suffered in the past month, but could it recover?
The mining services provider’s shares have fallen more than 13% from $63.20 at market open on 19 April to their current share price of $54.74
Let’s take a look at the outlook for Mineral Resources.
Could the Mineral Resources share price go higher?
Mineral Resources may have had a tough month, but multiple brokers are optimistic about the company’s share price.
Goldman Sachs is positive on the outlook for the company that also has interests in lithium, iron ore, and manganese. Goldman recommends Mineral Resources as a buy and has a $73.80 price target on the company’s shares. This is nearly 35% more than the share price at the time of writing.
Analysts predict Mineral Resources [earnings before interest, tax, depreciation and amortisation] EBITDA could double to A$2 billion in FY 2023.
Macquarie has placed an $85 price target on Mineral Resources, the Australian Financial Review reported. This is a 55% upside on the current share price. Macquarie analysts, however, cautioned iron ore and lithium prices could weigh on future earnings. They said:
Movements in spot iron-ore and spodumene prices present the most material risk to our earnings forecasts for Mineral Resources.
Mineral Resources recently achieved milestone lithium production at the Wodinga project in Western Australia. The company is also exploring lithium at Mt Marion. Commenting on the news, CEO Paul Brown said: “Achieving first spodumene concentrate production at Wodgina is a great milestone.”
My Foolish colleague Bernd recently reported Tribeca Global Natural Resources CEO Ben Cleary prefers ASX lithium shares at lithium production stage. He noted Mineral Resources in one of the top two lithium share holdings held by the Tribeca Global Natural Resources Fund.
Share price snapshot
The Mineral Resources share price has surged 23% in the past year, but has fallen around 2.4% year to date.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 4% in a year.
Mineral Resources has a market capitalisation of about $10.3 billion.