Barrenjoey is also positive on $7.7 billion Malaysia-based rare earths miner Lynas Corporation and Mr Morgan expects its Kuantan processing plant to deliver for shareholders.“I think Lynas could beat expectations,” he said. “Last quarter the town water supply they used to run their plant had a catastrophic event and that issue’s been fixed. They’ve got the opportunity to get the plant flat out, so I think there’s upside risk to the numbers.”Lynas shares are down 22.8 per cent over the past year, but remain 333 per cent higher over the past five years as Western governments support rare earths producers outside China, as strategic assets.Barrenjoey forecast Lynas to post a net profit of $363.6 million on sales of $896.9 million in financial 2023 on an EBITDA margin of 54.9 per cent. It has an overweight rating on the stock and $12.50 share price target, which represents 46 per cent upside to the $8.58 market price on Wednesday.
LYC Price at posting:
$8.68 Sentiment: Buy Disclosure: Held
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