The share price of Australian lithium miner Pilbara Minerals (ASX:PLS) has dropped down 6.8% to A$4.380, recording its lowest level since June 1.

This was caused primarily by Jefferies and Citi reducing their price targets following a less optimistic output projection from Pilbara Minerals (ASX:PLS) for fiscal year 24 and augmented capital expenditure values.

The company’s spodumene concentrate yield for FY24 is predicted to be between 660 and 690 thousand tonnes, in contrast to 620.1 kt in the previous year.

Jefferies has stated that market was disappointed by this lower-than-expected forecast, which falls short of Citi’s forecasts by 4%.

Calling attention to the company’s FY24 capex guidance at A$875 mln to A$975 mln, Jefferies noted that this represents a significant increase on its earlier expectations of A$442 mln.

Jefferies has subsequently decreased PT to A$5.50 from A$6.00, still maintaining a ‘buy’ rating for the lithium miner.

It further emphasised that despite the present market reaction, it still perceives long-term value in the company through additional expansions to production capacity, predicting a sturdy longer-term lithium market.

Citi, on the other hand, decreased the PT to A$4.80 from A$5.10, downgrading the rating to ‘neutral’ from ‘buy’.

Citi asserted that FY2024 should be regarded as a transition period for Pilbara Minerals (ASX:PLS).

With eight of 17 analysts rating the company ‘buy’ or higher, and seven ‘hold’ and two ‘sell’ or lower, the median PT is noted as A$5.23, according to Refinitiv data.

Pilbara Minerals is an Australian lithium mining company that is currently facing fiscal challenges.