The PLS Group Ltd (ASX: PLS) share price has seen significant volatility in the last 12 months. With the rising lithium price, it's worthwhile considering if the ASX lithium share is a buy or not.
As one of the largest lithium miners in Australia, it has significant scale advantages and this gives it strong operating leverage for when the lithium price does increase.
The company's recent quarterly update for the three months to 30 June 2026 showed the strength of its financial capabilities, despite the headwind of higher diesel prices.
Let's remind ourselves how the company performed in the latest quarter.
Image source: Getty Images
Strong June quarter
The ASX lithium share reported that in the three months to 30 June 2026, revenue was up 31% quarter over quarter thanks to a 13% quarterly rise of the lithium price to US$2,107 per tonne and a 28% rise in the volume of lithium sold to 249.9kt.
The cash margin from its operations (only) increased 26% because of the higher production costs, including diesel prices.
But, the FY26 annual numbers were very strong – revenue soared 152% to $1.9 billion thanks to a 121% rise of the realised price. Its cash margin from operations soared 607% to $1.36 billion.
PLS Group also noted that the P2000 and Colina project feasibility studies continued to progress. In June, it approved around $175 million of pre-final investment decision capital expenditure for the P2000 project.
I think that most ASX shares would be very happy with a 26% quarter-over-quarter increase of cash operating profit.
Is the PLS Group share price a buy?
In the short term, the direction of the PLS Group share price may be decided by changes in the lithium price. But, its production volume, efficiencies, and margins are also likely to be key influences on investor confidence.
Analysts have given investors their view on the appeal of the ASX lithium share.
According to CMC Invest, there have been ten ratings on the business within the last three months, with four of those being a hold, and six being a buy.
Of those ratings, the average price target is $5.84. That suggests a possible rise of around 40% over the next year at the time of writing. The lowest price target of those 10 analysts was $4.63, implying a possible rise of 12%.
The highest price target is $7.35, suggesting a whopping 77% rise over the next 12 months.
So, even the most negative view still suggests a double-digit rise, which would likely beat the S&P/ASX 200 Index (ASX: XJO) capital growth, in my view. Of course, predictions are not guarantees of the future.
It's one of the ASX shares I'd keep an eye on – lithium seems like a growing industry for the foreseeable future.
