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Highlights:

  • Macquarie Research and Canaccord Genuity both maintain BUY/Outperform ratings, with upside potential ranging from 13.8% to 61.7%.

  • June Quarter sales rose 72% QoQ, while revenue increased by 28% despite pricing pressure.

  • FY26 strategy focuses on cost reduction, operational efficiency, and capital discipline amid dynamic lithium market conditions.

Pilbara Minerals Ltd (ASX:PLS), a leading Australian lithium producer, has earned renewed investor confidence with BUY ratings from two prominent brokerages — Macquarie Research and Canaccord Genuity. Based on recent analyst estimates, the company’s stock has an upside potential of up to 61.7% from its current level of AUD 1.67.

BUY Ratings with Considerable Upside

Macquarie Research and Canaccord Genuity have both issued BUY-equivalent recommendations on Pilbara Minerals. Macquarie, in its latest review dated 31 July 2025, reaffirmed an "Outperform" rating with a price target of AUD 1.90, reflecting a 13.8% upside from current levels. Meanwhile, Canaccord Genuity remains more bullish, maintaining a BUY rating with a price target of AUD 2.70, indicating a substantial 61.7% upside potential. These assessments might follow the company’s June Quarter operational performance and promising FY26 guidance.

Operational Momentum Supports Analyst Confidence

The company recorded 221.3kt of spodumene production and 216kt in sales, marking a 72% increase in sales volume over the prior quarter. Despite a 17% decline in realised pricing, overall revenue grew by 28% to $193 million, supported by a lower unit operating cost of $619/t, benefiting from the ramp-up of the Pilgan Plant under the P1000 expansion.

The cash margin from operations reached $98 million, and the company ended the quarter with a cash position of ~$1 billion. These achievements mighth have contributed to analysts’ positive outlooks and reinforced Pilbara Minerals’ reputation as a low-cost, high-scale lithium producer.

FY26 Strategy: Efficiency and Discipline

Looking ahead, Pilbara Minerals aims to capitalise on its expanded production capacity, targeting spodumene output between 820kt and 870kt for FY26. The company has set a unit operating cost guidance of $560–$600/t, which would mark a continued decline in cost structure due to higher contact ore feed and better utilisation of the Pilgan plant.

Capital expenditure has been tightly managed, with FY26 infrastructure and project spending forecast at $145M to $155M — a significant reduction from FY25. The company will prioritise essential efficiency-related upgrades while deferring non-critical projects, such as the next stage of its Power Strategy, to remain in sync with market conditions.