PLS Group Ltd (ASX: PLS) shares have been on fire over the past 12 months.
During this time, the lithium miner's shares have risen over 100%.
Does this mean it is too late to invest? Let's see what analysts at Bell Potter are saying about the lithium giant.
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What is the broker saying?
Bell Potter was a touch disappointed with the company's performance during the first half. It highlights that PLS' underlying EBITDA was a touch short of expectations and its statutory profit was a big miss. The broker said:
PLS reported 1H FY26 underlying EBITDA of $253m (BP est. $260m). Statutory NPAT of $33m (BP est. $93m) deviated from our estimate with non-recurring costs associated with the mid-stream demonstration plant and P-PLS lithium hydroxide joint venture. In 1H FY26, operating cash flow was $180m; capex -$123m; and a cash injection into the P-PLS joint venture of -$38m. Period end cash was $924m; net cash (including leases) $234m (30 June 2025 net cash $518m); and available liquidity $1.6b. No dividend was declared, as expected, to preserve balance sheet strength.
The major talking point was the announcement of the restart of the Ngungaju operation. Its ramp-up is expected to commence in the coming months and will be supported by the Canmax offtake agreement. Bell Potter said:
PLS' Board has approved the ~200ktpa Ngungaju plant restart, with ramp-up to commence from July 2026. The decision follows last week's execution of a two-year, 150ktpa offtake contract with Canmax, featuring a US$1,000/t floor price with no upside price limit. Restart costs will largely be expensed, with FY26 operating costs now expected towards the upper end of guidance (A$560-600/t).
PLS also provided an update on timing of organic growth projects, with P2000 (Pilgangoora) and Colina (Brazil) Feasibility Studies targeted for December 2026 and December 2027, respectively. Subject to prevailing market conditions, we believe P2000 is likely to receive FID prior to Colina, being a fully permitted brownfield expansion with a well-understood orebody.
Should you buy PLS shares?
According to the note, Bell Potter thinks that PLS shares are fairly valued at current levels.
As a result, the broker has reaffirmed its hold rating and $4.60 price target on them. This is approximately 5% higher than its current share price of $4.38.
Commenting on its hold recommendation, Bell Potter said:
We maintain our Hold recommendation. PLS' earnings and cash flow will strengthen with the restart of the 200ktpa Ngungaju processing plant into an improved lithium price environment. P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.
