The Pilbara Minerals Ltd (ASX: PLS) share price has suffered through plenty of volatility in 2022 so far, but the stock could be set to outperform over the coming 12 months.
The S&P/ASX 200 Index (ASX: XJO) lithium stock reached a high of $3.89 in January before hitting a low of $1.975 in June, marking a 49% tumble between its year-to-date high and low.
Fortunately, it has since recovered most of its losses. The Pilbara Minerals share price is trading at $3.66 right now. That's 4% higher than it was at the start of this year.
For context, the ASX 200 has dumped 8% year to date.
And there are plenty more signs pointing to the company being a financial year 2023 winner.
Keep reading to find out what might be in store for the company and why some experts are bullish on its stock.
Could the Pilbara Minerals share price take off in FY23?
Could financial year 2023 (FY23) be the year in which the Pilbara Minerals share price takes off once again? Well, we can't predict the future, but there are plenty of signs the company could outperform over the near term.
For one, it just reported its maiden profit, bringing in a net profit after tax (NPAT) of $561.8 million for FY22. And it has big expectations for the future.
It believes it will up its production of spodumene concentrate to between 540,000 and 580,000 dry metric tonnes in FY23 – marking a potential 53% year-on-year increase.
However, it also expects its unit operating costs to lift from $555 per dry metric tonne to between $635 and $700 per dry metric tonne.
To top it off, the company believes the lithium deficit could surge to around 1.8 million tonnes by 2040 on a base case basis, likely causing the material's value to soar.
The company's not alone in expecting big things from lithium prices. Broker Macquarie believes rising lithium prices will drive the Pilbara Minerals share price higher over the next year.
It has slapped the stock with a $5.60 price target, implying a 54.3% upside, as my Fool colleague Tristan reports.
However, Credit Suisse is reportedly wary that the company's costs could surge.
It's placed a $2.30 price target on Pilbara Minerals shares, representing a potential 36.6% downside.
