Jefferies sets Buy rating on Lynas with A$7.60 price targetFeb...

Jefferies sets Buy rating on Lynas with A$7.60 price target
Feb 05, 2024 07:50AM ET

On Monday, Jefferies, a global investment banking firm, initiated coverage on Lynas Rare Earths (ASX:LYC) with a Buy rating and a price target of A$7.60. The firm highlighted Lynas's unique standing as the only significant producer of separated rare earths outside of China, emphasizing its world-class resource base and robust growth prospects.

Lynas Rare Earths is recognized for its extensive growth pipeline and the establishment of strong customer relationships. Jefferies pointed out that Lynas is uniquely positioned to play a pivotal role in creating a supply chain for rare earths that does not rely on China.

The demand for rare earths is expected to rise, driven by the global push towards electrification and decarbonization. Lynas's capabilities are seen as essential in meeting the growing need for these materials, which are critical in various modern technologies, including electric vehicles and renewable energy systems.

The investment firm's outlook on Lynas is based on the company's strategic importance in the global market for rare earths. With the world increasingly focusing on sustainable and clean energy solutions, Lynas's role is deemed crucial for the supply of these vital components.

Jefferies' price target of A$7.60 reflects the firm's confidence in Lynas's prospects and its potential for growth in the current market environment, where securing a stable and diversified supply of rare earths is becoming a strategic priority for many countries.

https://www.investing.com/news/stock-market-news/jefferies-sets-buy-rating-on-lynas-with-a760-price-target-93CH-3292683