The ASX lithium share PLS Group Ltd (ASX: PLS) has been one of the best-performing Australian stocks in the last year, rising by 277%, at the chart below shows. In the past six months alone, it has gone up 106%.
It is highly leveraged to what happens with the lithium price because it's a commodity business. When the resource price rises, it's almost all extra profit for the company – aside from paying more to the government – because it's more revenue for the same level of production (and costs).
With the lithium price significantly higher than where it was a year ago, it's no wonder the PLS Group share price has soared. Where could it go next? Let's take a look at some expert projections.
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PLS Group share price target
A price target tells us where analysts think the share price will be in 12 months from the time they make that investment call.
According to CMC Invest, there are currently six buy ratings and six hold ratings on the business. However, the average price target is $5, implying a mid-single-digit decline in percentage terms.
The most optimistic price target is $5.72, suggesting a possible mid-single-digit rise, though the worst price target is $2.51, suggesting a possible drop of more than 50%.
In other words, investors are cautious about the valuation that the business has reached. However, it's generally expected to hold onto its gains from the last year rather than suffer a big decline.
How has profitability changed?
The most recent result from the company was the FY26 half-year result, which was a perfect demonstration of how much better operating conditions are.
While the business reported a 6% increase in production to 432.8kt and the realised price for its lithium increased 40% to US$965 per tonne.
The big jump in the lithium price jumping by 47% to $624 million, underlying operating profit (EBITDA) jumped 241% to $253 million and the net profit after tax (NPAT) surged by 147% to $33 million.
Part of the reason why earnings increased so much was because its unit operating costs per tonne improved in the high single-digits.
What is the PLS Group share price valuation?
The projection on CMC Invest suggests that the business could generate earnings per share (EPS) of 13.5 cents in the 2026 financial year, which means the PLS Group share price is currently valued at 40x FY26's estimated earnings.
It's currently forecast to see EPS climb to 23.5 cents in FY27, which would be a year-over-year increase of around 75% if those predictions come true.
That means that the ASX lithium share is currently valued at 23x FY27's estimated earnings.
