Mineral Resources Ltd (ASX: MIN) shares are up more than 80% over a 12-month period, but the analyst teams at both UBS and Macquarie think the shares have further to run.
Both have issued new research reports in response to Mineral Resources' quarterly activity report this week, and are bullish on the company's prospects.
We'll get to their price targets for the company shortly. First, let's look at what Mineral Resources reported.
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Mineral Resources firing on all cylinders
The diversified miner and mining services company produced 341 million tonnes of ore in mining services for the full year, up 22% year on year and above the company's upgraded guidance range of 320 to 330 million tonnes.
The company's Onslow iron ore division shipped a record 9.6 million tonnes in the fourth quarter, bringing full-year shipments to 19.7 million tonnes, again exceeding guidance.
Meanwhile, the company's lithium sales were a record 158,000 tonnes for the quarter at a price of US$2425 per tonne, up 15% quarter on quarter.
The company's net debt also reduced by $0.2 billion to $4.3 billion.
Mineral Resources shares looking cheap
UBS said the quarterly report was strong, "closing FY26 with volume and cost guidance achieved or exceeded across all major business segments''.
They added:
Mining Services volumes, Onslow shipments, and lithium sales all exceeded guidance, while Onslow FOB costs outperformed guidance and the balance sheet continued to improve, with net debt falling to ~A$4.3bn and liquidity increasing to A$2.4bn. The result supports earnings and cash flow upgrades where market expectations were set closer to guidance mid points.
UBS said they remain buy-rated on the stock, "given: i) longer-dated growth optionality across Onslow, Wodgina, Mt Marion & Bald Hill, ii) supportive long-term lithium fundamentals, and iii) improving balance sheet flexibility allowing returns and growth to move back into investor focus''.
UBS upgraded its earnings per share calculations for Mineral Resources and increased its price target on the company from $79 to $81.
This compares to the current share price of $55.62.
Macquarie did not change its $85 price target on the company, but its analyst team were impressed with the half-year result.
They said:
Strong 4Q performance across all segments saw cost and production beats vs Visible Alpha. Whilst realised prices were in line, MIN's operational leverage was on show with the result flowing through to the bottom line. Even Services beat expectation, with strong internal volumes and external volume growth.
They added that the report had few negatives relative to consensus estimates or Macquarie's own estimates.
The analysts said further:
The result beat our optimistic expectations going into the result, with all assets performing well. The focus remains on execution of Onslow's growth, continuing the deleveraging cycle and potential capital returns.
