The Pilbara Minerals Ltd (ASX: PLS) share price has been on a rollercoaster ride over the past 12 months.
The lithium miner's shares have been as high as $4.58 before crashing as low as $2.31.
At the time of writing, the company's shares are closer to the low end of this range than the high end and are fetching $2.84.
But where will the Pilbara Minerals share price be heading next? Higher or lower than where it trades today? Let's see what brokers are saying about the lithium miner.
Where next for the Pilbara Minerals share price?
Opinion remains incredibly divided among the broker community.
There are some analysts that think that Pilbara Minerals shares are still overvalued, there are others that think they are cheap, and then there are a few that think they are about right.
Let's start with the ones in the middle. Bell Potter and Citi both have the equivalent of hold ratings on its shares with price targets of $3.00 and $2.90. This implies potential upside of 6% and 3%, respectively.
Last week, Bell Potter said:
PLS operates a low-cost asset in a tier one jurisdiction, is diversifying through the lithium value chain, and has a strong balance sheet ($1.6b cash at 30 June 2024) that can support expansion projects through sustained periods of market weakness. It offers a clean exposure to global lithium fundamentals and sentiment. On our updated valuation, we maintain our hold recommendation.
The bulls
Analysts at Jarden and Morgans are positive on the company and have the equivalent of buy ratings on its shares.
Jarden currently has a price target of $3.70, whereas Morgans has a price target of $3.30. This suggests that upside of 31% and 17%, respectively, could be possible for investors buying at today's price.
Morgans' analysts "view PLS as a fundamentally strong and globally significant hard-rock lithium miner."
The bear
Unfortunately, the team at UBS believes that the Pilbara Minerals share price could be heading meaningfully lower from where it currently trades.
A recent note reveals that its analysts have put a sell rating and lowly $2.00 price target on its shares. This implies potential downside of 30% for investors over the next 12 months.
Only time will tell which broker makes the right call. But it's quite likely that lithium prices will ultimately have the final say. If they rebound, then ASX lithium stocks are likely to rebound with them. But if they remain in the doldrums, lithium miners could do the same.
Though, it is worth noting that these ratings don't take into account today's news that Pilbara Minerals has agreed a new $1 billion debt facility in the form of a Revolving Credit Facility (RCF) with a group of domestic and international banks.
Chief Financial Officer, Luke Bortoli, said:
The establishment of the A$1 billion RCF is an important step in the maturity of Pilbara Minerals' capital structure. The new corporate facility replaces Pilbara Minerals' existing loan facilities, offers significant flexibility for future funding and bolsters the Company's already strong liquidity position. The establishment of the RCF shows the strength of Pilbara Minerals' balance sheet, notwithstanding the current market environment.
