Analysts have raised their price target for Lynas Rare Earths from $14.23 to $15.69 per share. They cite a slightly lower discount rate and modest improvements in revenue growth and profit margin forecasts as reasons for the increase.
What's in the News
- The U.S. and Australia committed $3B to mining and processing rare earths to counter China's market dominance. Experts note that shifting the global supply chain will take time (Reuters).
- China has introduced new export restrictions on rare earth materials, escalating trade tensions and raising concerns for industries reliant on these inputs (WSJ, Bloomberg).
- Western companies warn that the ongoing U.S.-China dispute over rare earths could disrupt supply chains and raise costs for key products like chips and vehicles (FT).
- Chinese authorities have begun scrutinizing export license applications for rare earth magnets, which may slow down shipments despite previous agreements to accelerate exports (Reuters).
- Taiwan states it does not expect significant effects on its chip manufacturing from China’s new rare earth export controls, citing use of different raw materials (Reuters).
Valuation Changes
- The consensus analyst price target has risen from A$14.23 to A$15.69 per share.
- The discount rate has decreased slightly from 7.17% to 7.14%.
- The revenue growth projection has increased modestly from 50.7% to 51.4%.
- The net profit margin estimate has edged up from 40.9% to 41.0%.
- The future P/E ratio forecast has increased from 21.0x to 22.9x.
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