EPA:ENX 4 January 2026

July 2, 2026, 10:12 AM EDT. UBS cut its rating on PLS Group Limited (ASX:PLS) as lithium market swings and shifting investor views weigh on the stock. The company is pushing ahead with the P2000 expansion, spending A$175 million before a final investment decision. That's raising questions about balancing growth plans against a tougher sector mood. PLS expects A$2.3 billion in revenue and A$812.9 million in earnings by 2029, figures that depend on still-volatile lithium prices. UBS pointed to the risks from major capital spending just as lithium demand looks uncertain. Some analysts call for lower revenue and profit estimates, factoring in new competition from lithium recycling and other options. Investors face a split between project risk and long-term optimism, with PLS's value tracking market swings and how well it executes.