PLS Group Ltd (ASX: PLS) shares are up slightly at the time of writing on Thursday, trading 0.47% higher at $5.30 a piece.
While the share price isn't storming higher today, it comes off the back of some strong and consistent gains.
Over the past month, PLS shares have climbed 19.5%, they're up 23% for the year to date, and a huge 321% higher over the year.
With an upsized market cap of $17 billion, PLS was recently added to the S&P/ASX 50 Index (ASX: XFL). At the time of writing, its shares are also the third-highest annual performer on the S&P/ASX 200 Index (ASX: XJO).
Image source: Getty Images
What pushed PLS shares higher?
The Australian lithium miner's shares have had an incredible run over the past year, soaring from a 52-week low of $1.07 a piece in June last year to a 12-month high of $5.30 on Wednesday last week.
A lot of the share price increase is due to a rally in lithium prices and sentiment, primarily driven by a surge in interest in electric vehicles (EVs) and battery energy storage.
Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy storage amid a shift towards renewable energy is also soaring.
This is especially the case recently, after the ongoing conflict in the Middle East threatened global fuel supplies and prompted a shift towards EVs as an alternative.
As owner and operator of one of the world's largest independent hard rock lithium mines, Pilgangoora in Western Australia, PLS has naturally scooped up a lot of the demand.
But it's not just market fundamentals that have pushed the company's share price from strength to strength over the past year. The business is also booming.
In February, the miner posted a bumped first-half FY26 results. It revealed a huge 47% jump in revenue, its underlying EBITDA flew 241% higher, and net profit came in at $33 million (reversing a $69 million loss in the prior period).
PLS said that looking ahead, it will prioritise balance sheet strength and operational flexibility as lithium market conditions evolve. The company is also progressing projects in Australia and Brazil.
In other exciting news, the board has also indicated it would consider paying shareholders a dividend from its full-year results if the market remains promising. It hasn't paid a dividend since 2023.
Can the share price keep storming higher? Or is it time to sell up?
Analyst sentiment on PLS shares is still mostly positive, even after the latest price rises.
TradingView data shows that nine out of 16 analysts have a buy or strong buy rating on the stock. Another seven analysts have a hold rating.
The average target price of $4.87 implies a potential 8% downside at the time of writing, but others think the shares could jump another 26.5% to $6.70.
Earlier this year, UBS said it expects that an 11% increase in lithium demand could push the market into a deficit from 2026 onwards. Based on that, the broker has lifted its lithium (SC6 CFR China) forecast by 64% in 2026 to US$1,800 per tonne. The broker anticipates lithium prices could jump up to US$2,625 per tonne in 2028.
This is great news for PLS as it positions itself to pick up even more demand. I think we could see plenty more out of the miner this year.
