Citi hikes output view on Lynas Rare Earths after Malaysia license extension

Ionic Rare Earths

08/05/2023 22:11

** Citi hikes price target on Australia's Lynas Rare Earths
Ltd  LYC.AX  to A$8.15 from A$8.10 after Malaysia's decision to
extend its operating license by six months prompted hikes in
production and earnings view
    ** LYC, the world's biggest rare earths producer outside of
China, on Monday said its operating license in Malaysia to
import and process rare earths was now valid until Jan. 1, 2024
    ** Brokerage hikes FY24 neodymium-praseodymium production
estimate by around 41% to 6,750 rare earths oxide tonnes (REOt),
with sales view also hiked 41% to 21,094 REOt
    ** However, brokerage expects rare earth prices likely to be
subdued until later in the year following removal of EV
subsidies in China, economic uncertainty, lower EV sales and
increasing supply
    ** Citi hikes FY23 core net profit view by 3.2% to A$260.1
mln ($176.43 mln), and by 25.3% to A$222.4 mln for FY24
    ** Brokerage, however, cuts rating to "neutral" from "buy"
after a 12% surge in share value on Monday and market
uncertainty
    ** 8 of 12 analysts rate the stock "buy" or higher, 2 "hold"
and 2 "sell" or lower; median PT A$8.25 – Refinitiv

 ($1 = 1.4743 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))