Mineral Resources Ltd (ASX: MIN) stock has been under fire in recent weeks.
So much so, the ASX mining stock is down over 50% in 2024 and trading within a whisker of a multi-year low.
But they say that every dog has its day, so is that today? Let's see what analysts are saying.
Is Mineral Resources stock a good buy right now?
The broker community remains divided on whether the mining company's shares are in the buy zone right now.
For example, analysts at Citi and UBS currently have sell ratings on Mineral Resources stock.
However, it is worth noting that their price targets of $35.00 are now 4% higher than where it trades. This could mean limited downside for investors buying at current levels.
Elsewhere, Goldman Sachs has a neutral rating and $41.00 price target on the miner's shares. Based on its current share price of $33.53, this implies potential upside of 22% for investors over the next 12 months. Not bad for a neutral rating. It said:
Upside risks: (1) Potential asset sell-downs to realize value, reduce capex and deleverage, such as the remaining 51% stake in the Ashburton haul road, (2) Rebound in lithium prices on global supply cuts and recovering EV demand in 2025, (3) External mining services contract wins which are high margin, (4) Greater value on gas exploration, (5) New projects added to the portfolio.
Downside risks: (1) lower lithium prices for longer and a further drop in the iron ore price which may lead to further capital requirements in FY25, (2) Higher than expected capex and opex, particularly ongoing high lithium deferred waste stripping capex, (3) Delays to the ramp-up of the Ashburton iron ore project associated with the haul trucks and/or trans-shippers.
Bullish Bell Potter
Analysts at Bell Potter remain bullish on Mineral Resources stock and see potential for big returns between now and this time next year.
A note from last week reveals that its analysts have retained their buy rating on its shares with a trimmed price target of $61.00. This suggests that upside of approximately 82% is possible over the next 12 months. It said:
Looking forward 12-months, we continue to view MIN as an attractive investment and maintain our buy recommendation. Positive catalysts for MIN include (1) the ramp-up of the Onslow Iron Project in 2025, (2) the deleveraging of MIN's balance sheet enabled by Onslow, and further capital release from the balance sheet, and (3) new leadership will inherit a strong set of assets and capabilities, an improved balance sheet, substantial growth optionality, and a stronger governance focus.
