PLS Group (ASX:PLS) took advantage of stronger lithium prices to reinvest in the business and add cash to its balance sheet, delivering an overall successful fiscal 2026, Jarden said in a Monday note.

The company's board declared a final dividend of AU$0.05 per share, which was a "key positive outcome" and ahead of consensus forecasts of AU$0.02, the investment firm said.

PLS Group's cash flow generation was stronger than expected, supported by a AU$74 million tax refund related to prior periods and a working capital release.

Additionally, PLS appears to be positioning for long-term strength in lithium prices, and the company is entering fiscal 2027 with strong operating momentum, net cash balance sheet of more than AU$1 billion, and total liquidity of around AU$2.8 billion, which is sufficient to internally fund the expected final investment decision for the P2,000 expansion project in Western Australia in the December quarter, the equity research firm said.

Jarden maintained an underweight rating on PLS Group with a target price of AU$3.10.

"Despite continuing to regard PLS as one of the highest quality mining exposures on the ASX, we maintain strict valuation discipline, and stay underweight, simply awaiting a more attractive entry point," Jarden said.

PLS Group shares rose 7% in recent Monday trade.