Mineral Resources Ltd (ASX: MIN) shares have been under the pump in 2024, and the selling pressure has continued these past few months.
The ASX mining share traded at a high of $79.76 per share on May 20 before sliding nearly 40% to trade at $48.77 per share at the time of writing, as shown in the chart below.
Such a sharp decline has caught the attention of many experts, raising the question: Is now the time to buy Mineral Resources shares?
Mineral Resources shares liked by brokers
Mineral Resources is a diversified mining and mining services company with exposure to iron ore and lithium markets.
The steep decline in its share price can be traced to a combination of factors. Most prominent of these is the recent downturn in iron ore prices, which has weighed heavily on the company's earnings expectations.
Iron ore – the key ingredient in steelmaking – is down nearly 30% from its yearly highs, trading at US$101 per tonne at the time of writing.
Aside from that, lithium – one of the company's newer segments — has also been under significant pressure in the past two years.
Despite these concerns, analysts tend to think Mineral Resources shares are undervalued at their current price. According to CommSec, consensus estimates rate the stock a buy.
Bell Potter remains optimistic about Mineral Resources, citing its production expansion plans and diversified operations.
It says the company handles everything in-house, from engineering to construction and operations. This 'vertical integration' is highly efficient, it says, adding to potential growth in the future.
The broker adds that coupled with a focus on expanding its production — particularly in the lithium and iron ore markets — the business is positioned for future growth.
Bell Potter maintains a buy rating on the stock, with a price target of $80 per share. This implies a potential upside of 62% from its current level.
L1 Capital has also shown confidence in Mineral Resources shares. It notes that the company's various business divisions have favourable medium-term tailwinds. It also thinks the stock remains undervalued.
Foolish takeaway
Mineral Resources shares have been battered in 2024. Investors continue to sell the stock, which has traded nearly 15% lower in the past month.
Experts see solid growth prospects in the company's lithium and iron ore divisions. With that comes elevated price targets and double-digit upside potential.
But as always, it's crucial to conduct your own due diligence.
