Jefferies raises PT on Australia's Pilbara Minerals after Latin Resources deal

Latin Resources

15/08/2024 19:53

** Analysts at Jefferies increase price target for lithium
miner Pilbara Minerals  PLS.AX  by 25% to A$3.40
    ** PLS said on Thursday it would buy smaller peer Latin
Resources  LRS.AX  for an implied value of A$559.9 mln ($369.4
mln)
    ** Brokerage says they are supportive of diversification of
growth options within PLS; reiterates "buy" rating
    ** Deal to give Pilbara control of Latin Resources' flagship
Salinas Lithium project in Brazil, which Jefferies values at
A$650 mln to A700 mln
    ** Salinas project holds the Colina deposit, which currently
hosts 2.3 Mt lithium carbonate equivalent resources
    ** Jefferies says ongoing drilling and Pilbara's know-how is
likely to see an increase in the resource size and project
economics in the deposit
    ** Seven of 17 analysts rate the stock "buy" or higher, six
"hold", four "sell"; median PT is A$3.08 - LSEG data
    ** Stock down about 30% YTD, as of last close 
   


($1 = 1.5122 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))