The Pilbara Minerals Ltd (ASX: PLS) share price has sunk lower in the last month, but could this be a buying opportunity?
Pilbara shares have fallen 11% since market close on 9 December and are currently fetching $3.97. In today's trade, Pilbara shares are up 1.02%.
So what is the outlook for the Pilbara Minerals share price?
Could Pilbara go higher?
Analysts at Citi have upgraded the Pilbara Minerals share price to a buy with a $4.70 price target, according to The Australian. This implies an upside of about 18%.
Pilbara is planning to pay its maiden dividend in the 2023 financial year. Macquarie analysts are tipping Pilbara to pay a dividend of 34 cents per share this year.
Pilbara is producing lithium from the Pilgangoora Project in the Pilbara region of Western Australia.
My Foolish colleague Tristan reported yesterday that seven analysts rate it as a buy, three as a sell and six as a hold. Goldman Sachs has a hold rating on Pilbara, also with a $4.70 price target.
Despite falling in the last month, Pilbara shares have leapt nearly 5% since market close on 30 December.
The Office of the Chief Economist is tipping spodumene prices to rise from an average of US$2,700 a tonne in 2022 to US$4,010 a tonne in 2023 before falling to US$3,130 a tonne in 2024. Lithium hydroxide prices are forecast to rise from US$39,900 in 2022 to US$61,200 in 2023 before sliding to US$48,500 a tonne in 2024.
Pilbara achieved an average price of US$7,552 per dry metric tonne (dmt) in its latest spodumene concentrate auction on the digital Battery Metals Exchange in December.
Pilbara Minerals share price snapshot
The Pilbara Minerals share price has jumped 11% in the last year.
Pilbara has a market capitalisation of about $11.9 billion based on the current share price.
