PLS chart, page-2823

Macquarierates PLS asOutperform(1) -

Macquarie expects regional lithium prices will follow the strong moves in prices in China and upgrades forecasts by up to 20% for 2021 and 2022.

The improved earnings outlook drives target increases for lithium miners and the broker retains a preference for Pilbara Minerals and Liontown Resources ((LTR)) over Orocobre ((ORE)).

The broker retains an Outperform rating and raises the target to $2.90 from $2.70.

Target price is$2.90Current Price is$2.29Difference:$0.61
IfPLSmeets the Macquarie target it will return approximately27%(excluding dividends, fees and charges).

Current consensus price target is$2.20, suggesting upside of2.6%(ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Macquarie forecasts a full yearFY22dividend of0.00cents and EPS of12.00cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is19.08. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is8.2, implying annual growth ofN/A. Current consensus DPS estimate is0.8, implying a prospective dividend yield of0.4%. Current consensus EPS estimate suggests the PER is26.1.

Forecast for FY23:

Macquarie forecasts a full yearFY23dividend of0.00cents and EPS of14.90cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is15.37. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is11.4, implying annual growth of39.0%. Current consensus DPS estimate is1.0, implying a prospective dividend yield of0.5%. Current consensus EPS estimate suggests the PER is18.8.