Lynas Rare Earths downgraded to Market Perform from Outperform at TD Cowen

TD Cowen analyst David Deckelbaum downgraded Lynas Rare Earths to Market Perform from Outperform with a price target of A$6.50, down from A$9. With spot lithium pricing down 80% from one year ago, the firm expects further estimate and guidance revisions and as a result, lowered its pricing forecasts as it continues to await customer restocking. Citing continued weak pricing and a more challenged risk/reward environment over the next twelve months, TD downgraded names where it anticipates “inordinate growth capex cuts, increased balance sheet stress, and cash burn.” The firm says Q4 reports should prove to be a pivotal point for the lithium space as incumbent producers face pathways of lower production to bolster prices and developers look to push out timelines to maintain balance sheets.