The Mineral Resources Ltd (ASX: MIN) share price has been a very strong performer over the last 12 months.
Since this time in 2022, the mining and mining services company's shares have risen a sizeable 28%.
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Why has the Mineral Resources share price smashed the market?
A key driver of its strong gains has been the company's performance in FY 2023.
Thanks largely to its lithium operations, Mineral Resources reported a huge jump in its profits during the first half.
For the six months ended 31 December, the company's underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was up 503% to $939 million and its net profit after tax jumped 1,890% to $390 million.
This allowed the company to bring back its interim payout, with the Mineral Resources board declaring a fully franked $1.20 per share dividend.
Can its shares keep rising?
The good news is that there could be plenty more left in the tank according to analysts at Bell Potter.
This week, the broker reiterated its buy rating with a trimmed price target of $100.00. Based on the latest Mineral Resources share price of $78.02, this implies potential upside of almost 30% for investors over the next 12 months.
In addition, the broker is forecasting fully franked dividend yields of 2.4% in FY 2023, 5.1% in FY 2024, and then 10.1% in FY 2025.
Why is it bullish?
Bell Potter is expecting big things from the company's business transformation and is forecasting significant earnings growth.
So much so, it estimates that the Mineral Resources share price trades on a EV/EBITDA ratio of just 3.1x FY 2025 earnings.
It commented:
Over the next two years we forecast that as MIN's business transformation is completed, growing production volumes, and improving margins, will result in significant earnings growth. Notwithstanding our adoption of more conservative lithium price forecasts, we retain the view that the longterm lithium demand outlook remains strong, and producers stand to benefit from further price volatility.
