Pilbara Minerals Ltd (ASX: PLS) shares had a month to forget in February.

During the period, the lithium miner's shares sank over 17%.

Unfortunately, its shares have continued to fall since then and hit a multi-year low of $1.86 this week.

Why did Pilbara Minerals shares sink last month?

Investors were hitting the sell button amid broad weakness in the lithium industry and the release of a disappointing half year result.

In respect to the latter, the company reported a 44% decline in revenue to $426 million. This was driven by a 58% decrease in the average realised price, which offset a 37% increase in sales volumes to 418.6kt.

Things were even worse for Pilbara Minerals' earnings. Its underlying EBITDA for the Pilgangoora operation was down 83% to $74 million for the half and it swung to an underlying net loss after tax of $7 million. This compares unfavourably to a profit of $286 million in the prior corresponding period.

And on a statutory basis, the company's loss came in at $69 million. This reflects the performance of the underlying Pilgangoora Operation and the impacts of expenses and losses from investments in its new growth platforms.

Given that some analysts believe that lithium prices are going to remain subdued for some time to come, investors appear to have been giving up on Pilbara Minerals shares and looking for new opportunities.

Should you buy the dip?

The team at Bell Potter remains positive on the company and is recommending it as a buy. This is due largely to the quality of its operations and its belief that a lithium shortfall is around the corner. It said:

PLS operates a low-cost asset in a tier one jurisdiction, is diversifying through the lithium value chain, and provides a clean exposure to global lithium fundamentals and sentiment. While we expect lithium prices to remain volatile, we hold a robust EV0demand driven long-term market outlook. We believe higher prices are required to incentivise new sources of supply to moderate our forecast market shortfalls from 2026-27.

According to the note, Bell Potter has a buy rating and $3.00 price target on Pilbara Minerals' shares.

Based on its current share price of $1.89, this implies potential upside of approximately 59% for investors over the next 12 months.

To put that into context, if Bell Potter is on the money with its recommendation, a $10,000 investment would turn into almost $16,000 by this time next year.