PLS Group's (ASX:PLS) approval of AU$175 million of pre-final investment decision capital expenditure gives it the ability to fast-track the P2000 lithium operation in Western Australia while maintaining project optionality, Jefferies said in a Friday note.

Strong shipments for the fiscal fourth quarter so far indicate the successful unwinding of the previous quarter's record production into a resilient price environment, the equity research firm said.

PLS is targeting first ore at P2000 in mid-2029, one year ahead of Jefferies' initial expectations of mid-2030, following a final investment decision expected in the third quarter of fiscal 2027.

"PLS maintains elastic production capability and a clearly defined growth pipeline," the investment firm said, adding that it continues to hold a constructive long-term view on the company, supported by supply/demand dynamics and strong operational fundamentals.

Jefferies reiterated its buy rating on PLS with a price target of AU$6.70.

PLS Group's shares were down nearly 1% in recent Monday trade.