Pilbara Minerals set to stabilize in 2025, Morningstar says, but cuts valuation

Pls

30/07/2025 21:51

July 30 (Reuters) - ** Analysts at Morningstar expect operations at Australia's Pilbara Minerals PLS.AX to stabilize in 2025 after stock lost nearly 45% of its value in 2024

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

** Investment research firm expects FY26 production volume at 850 kilotons, about 13% higher as compared to last year

** Shares in Pilbara surged on Wednesday after the lithium miner posts a rise in FY25 sales but reports lower revenue

** Morningstar lowers its fair value estimate on PLS by 7% to A$2.80, citing potentially softer near-term lithium prices and earnings; adds shares appear materially undervalued

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

** Stock down 21.2% YTD

($1 = 1.5559 Australian dollars)

 (Reporting by Keshav Singh Chundawat in Bengaluru)

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