Pilbara Minerals Ltd (ASX: PLS) shares are a popular option for investors looking for exposure to the lithium industry.
But are they a buy right now? Let's see what analysts are saying about the Western Australia-based lithium miner.
Are Pilbara Minerals shares a buy, sell, or hold for 2025?
Firstly, whether or not Pilbara Minerals is a good investment or not will largely depend on what happens with lithium prices in 2025.
Prices have been under significant pressure again this year due to soft demand and increased supply. If things were to change and prices were to rebound strongly next year, the whole lithium industry is likely to go with it.
In light of this, Pilbara Minerals shares are high up there on the risk scale and are largely only suitable for investors with a high tolerance for risk.
With that said, let's see what brokers are saying about the mining giant now.
What are brokers saying?
The broker community remains divided on the outlook for Pilbara Minerals shares.
For example, the team at UBS is extremely bearish on the lithium miner and has a sell rating and lowly $2.00 price target. This implies potential downside in the region of 40% over the next 12 months.
UBS has concerns that additional lithium supply from Africa will come to market in the near future and keep lithium prices at low levels.
Elsewhere, the team at Bell Potter is sitting on the fence with its hold rating and $2.95 price target. Though, this suggests that its shares could fall 10% from current levels. It 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 ($1.4b cash at 30 September 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.
Finally, the team at Morgans is the most bullish of the major brokers. However, even it sees limited upside for Pilbara Minerals' shares from current levels.
The broker currently has an add rating and $3.25 price target on its shares. Which is just a single cent higher than where they trade today.
All in all, the consensus seems to be that the lithium giant is a hold at present, but could become a buy if its shares were to pullback in the region of 15% to 20%.
