PLS closed down 6.4% on Wednesday. While the drop felt sharp intraday, it barely dented the stock’s rebound from its June low. It’s worth remembering that PLS remains unprofitable, having posted losses in 1H25, so from an investment perspective, it’s primarily a play on lithium prices. Some support for the commodity has come from China, although the picture has been mixed of late, while global mine mothballing is constraining excess supply, leaving the stock in search of a new equilibrium. With lithium trading in a volatile range between US$600 and US$1,000 over the past three months, largely driven by Chinese policy shifts, taking a definitive view of PLS is challenging.
- We can see PLS rotating between $2 and $2.50 over the coming weeks/months.
MM is now neutral towards PLS around $2.35
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