Jefferies upgrades Lynas Rare Earths stock to Buy on US rare earth policy

Published 11/07/2025, 05:34
Jefferies upgrades Lynas Rare Earths stock to Buy on US rare earth policy

Investing.com - Jefferies upgraded Lynas (F:LYI) Rare Earths Ltd (ASX:LYC) (OTC:LYSDY) from Underperform to Buy and raised its price target to AUD10.00 from AUD6.40. The company, currently valued at $5.1 billion, has seen its stock surge over 50% year-to-date according to InvestingPro data.

The upgrade follows news that MP Materials secured a 10-year floor price of US$110/kg for NdPr with the U.S. Department of Defense, covering all stockpiled or sold products.

Jefferies views this development as a signal of "a strong US push for Rare Earth Magnet Independence," which could lift upside risk across the rare earth pricing complex.

The investment firm believes Lynas appears to be "the next logical beneficiary of government market support," positioning the company to potentially benefit from similar policy initiatives.

The significant price target increase from AUD6.40 to AUD10.00 represents growing confidence in Lynas’s market position within the strategic rare earths sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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