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Investing.com - Jefferies downgraded Pilbara Minerals Ltd (ASX:PLS) from Buy to Hold while raising its price target to AUD2.10 from AUD2.00.
The lithium producer reported underlying EBITDA of $97 million, which beat market consensus by approximately 10% but fell 3% below Jefferies’ estimates.
Pilbara Minerals continues to implement its P850 strategy, focusing on cost reduction initiatives across its operations.
Jefferies noted that recent strength in the lithium market is providing support for Pilbara’s operational cash flow.
According to Jefferies’ analysis, Pilbara Minerals’ current valuation implies a spodumene concentrate (SC6) price of US$1,098 per tonne, which sits below Jefferies’ long-term price forecast of US$1,250 per tonne and represents a marginal premium to spot prices.
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