Investors looking for opportunities in ASX mining shares may want to keep an eye on Pilbara Minerals Ltd (ASX: PLS) and Woodside Energy Group Ltd (ASX: WDS) after both companies were recently rated as broker buys.
Shares in both companies have had a difficult year, with Pilbara down 26% and Woodside slipping 15% since January, respectively.
Let's see why brokers are bullish on these 2 ASX mining shares.
ASX mining shares rated as buys
Lithium miner Pilbara Minerals' share price has been hammered in 2024, as prices for the battery metal slumped to their lowest point in years.
Despite the weak lithium market environment, Morgans has a buy rating on Pilbara Minerals shares.
Morgans' view is a contrarian one, with consensus rating the stock a hold, CommSec data shows.
According to my colleague James, the broker's optimism comes after Pilbara Minerals announced a deal to acquire Latin Resources Ltd (ASX: LRS).
While the market's initial reaction to the acquisition was lukewarm, Morgans sees significant potential in the move for the ASX mining share.
It says the deal could pay off handsomely if Pilbara successfully develops Latin Resources' hard-rock Salinas Lithium Project in Brazil.
Morgans notes that if Pilbara can achieve costs similar to its Pilgangoora Operation, the acquisition could deliver strong future returns.
It values the ASX mining share at $3.40 per share.
Pilbara trades at $2.92 per share at the time of writing, indicating a potential upside of 16% from this price target.
Woodside Energy: Dividends in focus
Woodside Energy is also highly recommended by Morgans.
The broker also rates Woodside shares a buy, with a price target of $35, representing an upside potential of 33% from the current share price.
Morgans highlights Woodside's recent share price weakness as an opportunity to accumulate positions in the ASX 200 share.
It is particularly impressed with the ASX mining share's earnings and dividend prospects. In FY24, Morgans forecasts fully franked dividends of $1.28 per share, projecting an increase to $1.54 per share in FY25.
At Woodside's current share price of $26.39 on publication, this translates to dividend yields of 4.8% and 5.8%, respectively.
This is comparable to the interest rates on most high-yield savings accounts right now. Except, there's the prospect for capital gains, should Morgan's price target be met.
Meanwhile, the consensus of analyst estimates also rates Woodside shares a buy, according to CommSec.
Foolish takeaway
Both Pilbara Minerals and Woodside Energy have shown mixed results in FY24. That hasn't stopped brokers from assigning buy ratings to the shares, however.
The ASX mining shares are down 38% and 31% in the past twelve months, respectively.
