Australia's Pilbara Minerals hits 2-week low after Morningstar cuts valuation

Pls

31/07/2025 05:42

Updates

** Shares of Pilbara Minerals PLS.AX fall 8.4% to A$1.58, its lowest since July 17

** Morningstar lowers fair value estimate on the miner by 7% to A$2.80, citing potentially softer near-term lithium prices and earnings

** FY26 capital expenditure forecast of nearly A$320 million ($205.66 million) is higher than prior estimates, Morningstar says

** Morningstar, however, expects Pilbara's operations to stabilize in 2025 after stock lost nearly 45% of its value in 2024

** Says completion of co’s plant expansion is driving ongoing lower unit costs and higher production volumes, signaling an end to high-cost projects

** Shares in Pilbara surged on Wednesday after co posted a rise in FY25 sales but reported lower revenue

** Stock down 27.7% YTD, including the day's moves

($1 = 1.5559 Australian dollars)

 (Reporting by Keshav Singh Chundawat and Nikita Maria Jino in Bengaluru)

 ((Keshav.SinghChundawat@thomsonreuters.com;))