Street View: Brokerages raise PT for Australia's Pilbara Minerals on cost-out optimism

Pls

27/10/2025 03:21

** Pilbara Minerals PLS.AX beat analysts' estimates on Friday on the back of cost reductions, and extended studies for a new chemicals plant as government support for critical minerals projects grows

** Miner reported a 2.1% rise in first-quarter spodumene concentrate and an 11% drop in costs, supported by stable output and improved recoveries at its Pilgangoora ops in Western Australia

** Shares rise as much as 3.1% on Monday, defying the underperformance in mining stocks, which are flat .AXMM

IMPROVED PRODUCTION ON LOWER COSTS KEY

** Bell Potter hikes TP to A$2.65 from A$2.10, also raises EPS estimates by 4% and 5% for fiscals 2027 and 2028, respectively

** Brokerage says Pilbara continues to navigate a volatile lithium market environment, with several initiatives targeting cash preservation during the current weaker lithium price environment

** Macquarie raises TP by 9% to A$3, also increases EPS forecasts by 22%, 44% and 27% for fiscals 2026, 2027 and 2028, respectively

** UBS increases PT by 7% to A$2.4, driven by higher production rates from upgrades to plant recovery expectations as well as a continued cost-out

** Citi also raises TP to A$3.25 from A$2.20, says co is focusing on optimising on the lowest cash burn until spodumene prices recover

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))