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Why is the Piedmont Lithium share price off to such a great start in August?

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The Piedmont Lithium Inc (ASX: PLL) share price has finished the week higher, closing on Friday at 66 cents.

After finding a bottom on 15 July, Piedmont shares have curled upward and are now testing their June FY22 levels again.

Investors have pushed the stock up to this level on no news. As seen below, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has also ticked up lately, and currently trades 2% higher on the month.

Despite no market-sensitive news recently, Piedmont shares have drifted higher in unison with the metals and mining index, as seen above.

The index, a benchmark for listed metals and mining companies on the ASX, has basically mirrored the Piedmont share price this year to date – or, more likely, the other way around.

As the sector continues strengthening, it stands to reason that Piedmont is attracting buys on the back of this, in the absence of any other data.

Further, whilst numerous commodity baskets enter sell-off mode and trim most of 2022’s gains, lithium remains in its place on the mantlepiece and has clipped a 418% YoY gain.

The impact of lithium’s top-heaviness has seen ASX lithium players catch a bid in the last few weeks, alongside peers in the sector.

As such, the Piedmont Lithium share price boasts a 26% gain over the past month of trade, narrowing its YTD loss to just 10%.

Amid the market turbulence, brokers have been unswayed on their projections on the share as 100% of analysts covering Piedmont rate it a buy or strong buy right now, according to Refinitiv Eikon data.

The consensus price target on the company is a mammoth $101 per share, implying more than $56 per share of upside potential if they are correct.

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