A: I am no expert on the lithium market except to note that it was unquestionably over-hyped. If I did want to play in lithium, it would be through an established producer rather than a developing producer in Pilbara Minerals (PLS).

 

Of the major brokers who do cover it, Credit Suisse has a target price of $0.90 and an outperform, and there are 2 neutral recommendations from Citi and Ord Minnett (J P Morgan) with a target of $0.60. Macquarie has a ‘no -rating’.

 

To quote from Credit Suisse:  “FY 19 results were in line. Cash is clearly tight for a single-asset operation, with uncertain cash inflows stemming from market weakness.”