Can the Pilbara Minerals share price really deliver 60% upside?

On top of recent gains, some analysts believe the lithium miners' shares could keep climbing higher.

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Key points

  • Pilbara Minerals shares could still have another 60% upside, according to one broker
  • The Pilbara Minerals share price has soared more than 100% in a year
  • Pilbara shares are up almost 4% so far in Wednesday trading

The Pilbara Minerals Ltd (ASX: PLS) share price has soared more than 100% in a year, but can it go even higher?

Pilbara shares have soared 127% in 12 months and are currently fetching $4.92 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 7% in a year.

In today's trade, Pilbara shares are up 3.9%.

Let's take a look at the outlook for this ASX 200 lithium share.

What's the outlook?

Pilbara Minerals is exploring the Pilgangoora lithium hard rock project, 120km from Port Hedland in Western Australia.

Analysts at Macquarie have placed an "outperform" rating on Pilbara Minerals with a $7.70 price target.

This implies a 56.8% upside based on Pilbara's current share price.

Macquarie is positive on Pilbara due to the company's expansion plans, downstream activities, and potential to continue to deliver "bumper profits".

On the flip side, Red Leaf Securities CEO John Athanasiou recommends investors sell Pilbara Minerals shares.

Athanasiou suggested investors "consider taking profit", given the share price doubled to 8 June 2023.

Commenting on Pilbara Minerals on The Bull, he said:

The company produced 148,131 dry metric tonnes of spodumene concentrate in the March quarter, down 9 per cent on the previous quarter. The average estimated realised spodumene concentrate sales price was down 15 per cent on the December quarter. 

Meanwhile, Morgans has recently retained its add rating on Pilbara shares with a $5 price target. Analysts are optimistic Pilbara is still well-positioned to deliver profit in the future. Morgans also believes a share buyback could be on the way.

Share price snapshot

The Pilbara share price has gained 35.6% in the year to date and climbed 3.8% in the past month.

Pilbara Minerals has a market capitalisation of about $14.7 billion based on the latest share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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