BUZZ-Jefferies raises PT on Australia's Pilbara Minerals after Latin Resources deal

Reuters08-16

** Analysts at Jefferies increase price target for lithium miner Pilbara Minerals by 25% to A$3.40

** PLS said on Thursday it would buy smaller peer Latin Resources for an implied value of A$559.9 mln ($369.4 mln)

** Brokerage says they are supportive of diversification of growth options within PLS; reiterates "buy" rating

** Deal to give Pilbara control of Latin Resources' flagship Salinas Lithium project in Brazil, which Jefferies values at A$650 mln to A700 mln

** Salinas project holds the Colina deposit, which currently hosts 2.3 Mt lithium carbonate equivalent resources

** Jefferies says ongoing drilling and Pilbara's know-how is likely to see an increase in the resource size and project economics in the deposit

** Seven of 17 analysts rate the stock "buy" or higher, six "hold", four "sell"; median PT is A$3.08 - LSEG data

** Stock down about 30% YTD, as of last close

($1 = 1.5122 Australian dollars)

(Reporting by John Biju in Bengaluru)

((John.Biju@thomsonreuters.com;))

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