Here’s why the Pilbara Minerals (ASX:PLS) share price is bouncing back 8% today

Pilbara Minerals grabs the market’s attention amid a renewed outlook for lithium…
The post Here’s why the Pilbara Minerals (ASX:PLS) share price is bouncing back 8% today appeared first on The Motley Fool Australia. –

The Pilbara Minerals Ltd (ASX: PLS) share price is staging a comeback from the fall it experienced yesterday. However, the reason behind the rebound is not company-specific. Instead, sentiment appears to have been rejuvenated sector-wide today.

At the time of writing, shares in the lithium producer are up 8% to $2.71. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is trading 0.24% lower to 7,337.4 points.

So, what could be driving this discrepancy between the overall market and the Pilbara Minerals share price today?

A bright future for Pilbara Minerals share price

This morning it was revealed that the analyst team over at Macquarie is seeing a considerable opportunity for ASX-listed lithium miners.

Even more promising, the broker expects the trend to be more than a fad. The analysts expect a positive environment for at least four years as electric vehicle adoption supports record lithium prices.

While Macquarie named a number of companies that it believes are set to benefit from this trend, Pilbara Minerals was labelled its top pick among ASX lithium shares.

Furthermore, the broker maintained its outperform rating and increased its price target on the Pilbara Minerals share price by 32% to $3.70. This would suggest a further ~36% upside in the company’s shares if it were to reach Macquarie’s new price target.

Mining giant shows taste for lithium

In the midst of the rebounding sentiment for Pilbara Minerals today, another newsworthy item involving lithium has been handed out. This morning Rio Tinto Limited (ASX: RIO) revealed its intention to acquire an Argentinian lithium mine for US$825 million.

Although the news does not directly involve Pilbara Minerals, it shows that the lithium opportunity is on the radar of mining giants. Additionally, investors might be perceiving the news as an indicator for possibly more merger and acquisition opportunities within the lithium mining sector.

The Pilbara Minerals share price is up an astonishing 208% since the beginning of 2021.

The post Here’s why the Pilbara Minerals (ASX:PLS) share price is bouncing back 8% today appeared first on The Motley Fool Australia.

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More reading

Why Afterpay, Lovisa, Liontown, and Pilbara Minerals shares are racing higher

ASX 200 (ASX:XJO) midday update: Rio Tinto’s lithium acquisition, Pilbara Minerals jumps

Macquarie names the best ASX lithium shares to buy in 2022

Here are the 3 most heavily traded ASX 200 shares this Tuesday

Why Afterpay, Humm, Namoi Cotton, and Pilbara Minerals shares are falling

Motley Fool contributor Mitchell Lawler owns Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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