Owners of Pilbara Minerals Ltd (ASX: PLS) shares were smiling in August.
During the month, the lithium miner's shares rocketed an impressive 52%.
Image source: Getty Images
Why did Pilbara Minerals shares rocket last month?
There were a couple of catalysts for this strong rise last month.
The main one was a rebound in lithium prices, which lifted most ASX lithium stocks.
For example, Liontown Resources Ltd (ASX: LTR) shares were up over 20% in August and Mineral Resources Ltd (ASX: MIN) shares jumped over 30%.
Lithium prices gained for a number of reasons. This includes optimism over demand and a crackdown on lithium mining activities in China.
This rebound has sparked hopes that lithium prices have now bottomed and that it could be onwards and upwards from here.
What else?
Also giving Pilbara Minerals shares a boost was the release of its FY 2025 results.
The lithium giant reported revenue of $769 million and underlying EBITDA of $97 million. While both were down sharply on the prior corresponding period, they appear to have been better than some investors had feared.
Should you invest?
Opinion is divided on whether Pilbara Minerals shares are good value or not.
For example, the team at Morgans thinks that investors should keep their powder dry for the time being.
Last month, in response to its results release, the broker downgraded its shares to a hold rating with a $2.30 price target. It said:
FY25 headline numbers contained no major surprises. Higher D&A than forecast and accounting treatment of some expenditure were behind the lower underlying NPAT compared to MorgansF and consensus. PLS' FY26 strategy will focus on maximising operational performance and fully realising the benefits of the Pilgangoora expansion, while maintaining cost discipline and progressing diversification initiatives at Colina (Brazil) and P-PLS (South Korea).
PLS highlighted increased demand for its product from chemical converters but cautioned lithium prices will remain volatile and subject to sharp spikes and drops. We downgrade to a HOLD rating (from BUY) following a strong share price run with an unchanged A$2.30ps Target Price.
Elsewhere, Canaccord Genuity has retained its buy rating on its shares with a price target of $2.70. This implies potential upside of almost 16% for investors over the next 12 months.
And while Macquarie Group Ltd (ASX: MQG) has an outperform rating and $2.20 price target on its shares, this is lower than where Pilbara Minerals shares currently trade.
