Jefferies cuts Aussie PLS' PT citing full value; Morningstar warns new supply to cap lithium prices

Jefferies trims its PT for lithium producer PLS PLS.AX, saying that while its long‑term stance remains constructive, it sees the equity as full at current levels

Jefferies cuts price target to A$4 from A$4.25, while maintaining 'Hold'

PLS retains the capacity to lift output in a rising price environment, and while operational gains under the P850 operating model are encouraging, it remains uncertain whether the lower unit‑cost profile can be sustained over the medium term - Jefferies

Morningstar says PLS weighing a potential restart of its Ngungaju plant, and a similar announcement from peer MinRes MIN.AX, suggests that lithium prices are approaching incentive levels for higher‑cost supply

However, Morningstar flags additional supply to cap lithium prices over the medium term as Ngungaju restarts

On Friday, the miner posted Q2 rev of A$373 million ($259.27 million), up from A$216 million a year earlier

Stock up 1.7% YTD as of last close

($1 = 1.4386 Australian dollars)