TD Cowen analyst David Deckelbaum has reiterated their neutral stance on LYSCF stock, giving a Hold rating on July 12.
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David Deckelbaum has given his Hold rating due to a combination of factors affecting Lynas Rare Earths. The company has shown impressive production growth, particularly in NdPr, with record outputs expected to continue increasing. However, despite this growth, the elevated costs from the Kalgoorlie project are impacting margins, and there is no anticipated significant change in economic conditions that would justify a more favorable rating.
Additionally, while Lynas has achieved higher sales prices and a strong quarter in terms of production volumes, the increase in capital expenditures and ongoing challenges, such as the wastewater management issue in Texas, present risks. The company’s strategic moves, including partnerships and expansion efforts, indicate potential for future growth, but the current financial dynamics and operational challenges lead to a cautious outlook, supporting the Hold recommendation.
In another report released on July 12, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a A$10.00 price target.