Many on this board say undervalued. Many factors say they are not. Here is just one. Book value is 1.2B Market cap is 8.5 R=multiple is 7. Right now Multiple for ASX and S &P 500 is about 4. Long term average less than 2. Average for recessions less than 1. Yes many on this board are correct that Revenue and earnings have grown dramatically. Dramatic growth for an already over priced stock does not mean that the stock is not still overpriced. Especially going into a period of SP contraction.
Expect to see even more diversion of estimates going forward. Not only for Lynas but all stocks. Simple reason is there is a wide spectrum of opinion on what the economy will do. From a minor correction to full long lasting corrections. Some analyst are already including this others are not. Also it is embarrassing for an analyst to go from an estimate of $20 to $8. What you will see is many of the higher analyst just stop covering. They will be replaced with new people with much lower estimates.
LYC Price at posting:
$9.42 Sentiment: Sell Disclosure: Not Held
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