Where could the Pilbara Minerals share price be in 12 months?

Will the market be kind to this lithium giant? Let's see what analysts are expecting.

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The Pilbara Minerals Ltd (ASX: PLS) share price has just endured another red day.

The lithium miner's shares ended the session 2.5% lower at $3.32.

This latest decline means that that lithium giant's shares are now down 30% over the last 12 months.

It also leaves them trading within sight of their 52-week low of $3.10 and a long way from their 52-week high of $5.43.

But what about the next 12 months? Could things be better for the Pilbara Minerals' share price and its shareholders? Let's find out.

Where could the Pilbara Minerals share price be in 12 months?

Firstly, the main driver of the company's share price performance from here will be the lithium price.

If the price of the white metal rebounds strongly, then its shares could hurtle higher. However, the general consensus is that lithium will be staying lower for the foreseeable future.

As a result, the broker community is feeling reasonably apathetic about the Pilbara Minerals share price right now.

For example, in the bear corner, Goldman Sachs is currently tipping its shares as a sell with a $2.80 price target. This implies potential downside of almost 16% for investors from current levels.

UBS is feeling a touch more bearish and has a sell rating and $2.70 price target on its shares, which suggests that they could fall almost 19%.

But there's reason for optimism.

Value could be emerging

The Pilbara Minerals share price has fallen so much recently that some neutral brokers are now seeing a lot of value emerging. This could be good news for its shares over the next 12 months.

One of those brokers is Macquarie. Last month, its analysts reaffirmed their neutral rating and $4.20 price target on the company's shares.

This price target implies potential upside of almost 27% for investors from current levels. That's better than the potential returns on offer with some buy-rated shares!

It is a similar story at Morgans. Although the broker downgraded the Pilbara Minerals share price to a hold rating in April, its price target of $4.10 is now materially higher than where its shares trade. So much so, investors would generate a 23% return if its shares were to rise to that level.

Unfortunately, it is impossible to say with certainty where the lithium giant's share price will be in 12 months. But there's certainly potential for it to be meaningfully higher than where it trades today. But conversely, as you can see above, it could also be materially lower. Time will ultimately tell which brokers have made the right call.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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