Analyst Forecasts For Lynas Rare Earths Limited (ASX:LYC) Are Surging Higher

Lynas Rare Earths Limited (ASX:LYC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the upgrade, the current consensus from Lynas Rare Earths' 13 analysts is for revenues of AU$1.1b in 2026 which - if met - would reflect a substantial 102% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 5,055% to AU$0.42. Prior to this update, the analysts had been forecasting revenues of AU$1.0b and earnings per share (EPS) of AU$0.27 in 2026. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Lynas Rare Earths

With these upgrades, we're not surprised to see that the analysts have lifted their price target 19% to AU$12.24 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Lynas Rare Earths' growth to accelerate, with the forecast 102% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Lynas Rare Earths is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Lynas Rare Earths could be worth investigating further.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Lynas Rare Earths that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.