Wildcat Resources Ltd (ASX: WC8) shares are up by more than 120% over the past 12 months, but according to the analyst team at Shaw and Partners, that could just be the start of something much bigger.
Shaw and Partners has released a new research note on the company in the wake of Wildcat's release of new drilling results from its Tabba Tabba project in Western Australia.
The broker has a very bullish share price target on the company, which I'll get to shortly.
First, let's look at what the company announced.
Image source: Getty Images
Strong drilling results across the board
Wildcat released new drilling results from its Bolt Cutter Central deposit, including both exploration and infill drilling.
The results included intersections such as 8m at 1.5% lithium oxide from a depth of 89m, and 16m at 1.5% from 116m.
Wildcat said Bolt Cutter extended over an area of 2.3km by 0.8km, and the mineralisation remains open in most directions.
The company said:
Excellent results from infill drilling continue to demonstrate the strength and continuity of lithium mineralisation at Bolt Cutter Central, with broad, strongly mineralised pegmatites intersected from near surface and extending down dip through the system. Drill targeting and planning of drilling for potential value-add and extensional step-out areas will commence post completion of the maiden resource targeted for delivery in Q4 this year.
The company also reported "excellent" results from metallurgical and infill drilling at the Tabba Tabba deposit, with intersections including 25.1m at 1.2% lithium oxide.
Wildcat said regarding this drill campaign:
Drilling was designed to support ongoing technical studies for the Definitive Feasibility Study (DFS), including the collection of representative material from the Hutt and Chewy pegmatite groups for further metallurgical and resource characterisation. Infill drilling was also undertaken in areas where previous drill rig access constraints had resulted in comparatively wider drill spacing, providing additional geological information and increased confidence in the interpretation of these areas.
The company said that a definitive feasibility study for Tabba Tabba was on track for delivery in the second half of 2026.
Wildcat said it was well-funded, with $37.2 million in cash at the end of June.
Shares looking cheap, broker says
Shaw and Partners said the lithium market was tightening, boding well for Wildcat.
The broker said:
Lithium markets have moved from the oversupplied conditions of the past two years toward renewed tightness as EV demand re-accelerates and high-cost supply continues to be rationalised. Even a short disruption, or even the prospect of a prolonged one, will support spot pricing and reinforce the bullish narrative we have been building around the lithium price over the past 12mths. We see this combination: a tightening global supply picture out of Chile and a high quality, low-cost, expanding WA discovery pipeline at Wildcat, as a bullish setup for WC8 shareholders, and we reiterate our positive stance on lithium equities into the 4Q26 resource catalyst window.
Shaw and Partners has a price target of $1.60 on Wildcat shares compared to 39.5 cents currently.
