Analysts cut PT on Lynas Rare Earths on softer pricing, looming Malaysia ban

Ionic Rare Earths

23/04/2023 23:00

** Citi cuts PT on ASX-listed Lynas Rare Earths Ltd  LYC.AX 
to A$8.10 from A$8.20 after Q3 sales revenue and average selling
price missed estimates
    ** Trims basket prices for neodymium and praseodymium (NdPr)
by 8%/10% in current year 2023/2024 on softer market conditions
    ** "We expect this weakness to be temporary and for prices
to recover throughout FY24"
    ** Canaccord Genuity (CG) lowers PT on the rare earths
producer to A$10.00 from A$11.00 on confirmed production cuts
and clarity on planned ramp-ups at Mt Weld and Kalgoorlie
projects
    ** Expects a slower ramp-up at Kalgoorlie processing
facility to the targeted 12 kilo-tonnes per annum ndPr run rate
by H1 of FY25
    ** Citi says ramp up of Kalgoorlie processing facility
remains "inherently unpredictable" amid a potential temporary
full shutdown in Malaysia from July 1
    ** Citi downgrades FY24 production marginally, after pricing
in the forecasted production curtailment from Malaysia
operations
    ** Eight of 12 analysts rate the stock "buy" or higher, two
"hold" and two "sell" or lower; their median PT is A$8.55 –
Refinitiv data
    ** Stock down about 13% this year, as of last close

 (Reporting by Savyata Mishra in Bengaluru, editing by Deepa
Babington)
 ((Savyata.mishra@thomsonreuters.com))