Growth Focus: Pilbara Minerals Limited (PLS)

by Patrick Taylor




Date of Data Capture: 23/10/2020

Name: PILBARA MINERALS LIMITED (PLS)

Classification: Lithium Mining

Current Price: $0.40

Market Capitalisation: $902 M

Forecast Sales* Growth: 34.36% *(CFP in 2022)

Yield Estimate: 0%

Consensus Price Target: $0.32

# Covering Analysts: 6

Premium at Current Price: +20.00%

Price Target Trend (3-Month): Up-Flat +39.13%

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Down / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• New energy metal supplier PLS could be turning a corner as the lithium market recovers strength, along with great expectations for future growth, we see a potential new uptrend forming here.
• Performance has been poor over the last few years as the company worked through terrible conditions, here showing strong sales growth and expectations for positive cash flow by 2022.
• Pricing peaked in late 2017 at $1.30 and fell by almost 90% by the time of the 2020 Covid-lows in March - here we find them rallying through major linear resistance with good momentum and plenty of old price targets higher above.
  • Support ($): 0.375, 0.35, 0.325, 0.30 & 0.25.
  • Resistance ($): 0.40, 0.50, 0.60, 0.70 (+).

Disclaimer

This report was produced by Taylor Securities Pty Ltd, which is a Corporate Authorised Representative (Number 414063) of Bespoke Portfolio Pty Ltd (AFSL 341991). Taylor Securities and Patrick Taylor (Representative number 414064) have made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Taylor Securities and Patrick Taylor does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities or financial products. The securities or financial products recommended by Taylor Securities and Patrick Taylor carry no guarantee with respect to return of capital or the market value of those securities or financial products. There are general risks associated with any investment in securities or financial products. Investors should be aware that these risks might result in loss of income and capital invested. Neither Taylor Securities and Patrick Taylor nor any of its associates guarantees the repayment of capital. WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.
 

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