PLS Group Ltd (ASX: PLS) shares have been in strong demand from investors over the past 12 months.
During this time, the lithium miner's shares have almost doubled in value.
Does this make it too late to invest? Let's see what analysts at Bell Potter are saying about the high-flying stock.
What is the broker saying?
Bell Potter was relatively pleased with PLS' performance during the second quarter, especially given its processing of low quality ore. It said:
PLS reported quarterly spodumene concentrate (SC) production of 208kt (BP est. 214kt) and sales of 232kt at 5.2% Li2O (BP est. 221kt). Lithium recoveries were 76% (1Q FY26 78%), a strong result despite processing higher levels of low quality ore. Unit costs were A$585/t FOB (BP est. A$579/t), up 8% QoQ, with lower production volumes; an inventory drawdown supported the higher sales.
At 31 December 2025, PLS had cash of $954m (30 September 2025 $852m), net cash (including leases) of ~$272m and available cash liquidity of ~$1.6b. Quarterly operating cash flow was $131m; capex was -$45m; and PLS received an income tax refund of +$74m. FY26 guidance was re-iterated.
Big news coming
The broker highlights that there is potentially some big news coming in the current quarter. That news relates to the Ngungaju operation, which PLS is looking at restarting. It said:
In the current quarter, PLS' Board will assess a potential restart of the Ngungaju processing plant (~200ktpa SC capacity), with approval contingent on confidence in sustained lithium market pricing. Associated capital expenditure is included in FY26 guidance; a four month ramp-up period is expected. PLS will also provide updated timelines for completion of a P2000 Feasibility Study and a Colina Development Study and further visibility around growth project sequencing.
Should you buy PLS shares?
Bell Potter thinks that the company's shares are fair value right now and has put a hold rating and $4.60 price target on them. This implies only modest upside of 2% for investors from its current share price.
Commenting on its hold recommendation, the broker said:
We maintain our Hold recommendation. PLS' earnings and cash flow will strengthen with around 200ktpa of idled spodumene concentrate capacity that can be rapidly reactivated into improved lithium prices. P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.
