Analyst David Deckelbaum of TD Cowen maintained a Hold rating on Lynas Rare Earths Limited (LYSCF – Research Report), with a price target of A$8.00.
David Deckelbaum has given his Hold rating due to a combination of factors impacting Lynas Rare Earths Limited. The company’s recent quarterly performance showed a notable revenue shortfall, missing estimates due to reduced rare earth concentrate volumes affected by maintenance activities. Despite this, Lynas is making strides in heavy rare earth separation, marking a significant step as the first non-China entity to commercialize such capabilities.
However, the macroeconomic environment remains challenging, and while Lynas is exploring new pricing models independent of China indices, its current capacity may not meet the full demand outside China. Additionally, Lynas’ expansion plans in the U.S. are contingent on further government funding discussions, adding another layer of uncertainty. These elements collectively contribute to the Hold rating, reflecting both the potential upside and the existing challenges the company faces.
According to TipRanks, Deckelbaum is an analyst with an average return of -5.0% and a 33.51% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as APA, EQT, and Devon Energy.
In another report released on April 14, Macquarie also maintained a Hold rating on the stock with a A$7.30 price target.