![Jefferies sets a buy rating on Lynas with a price target of A$7.60](https://i-invdn-com.investing.com/news/LYNXNPEC0Q1B5_L.jpg)
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On Monday, Jefferies, a global investment banking firm, initiated coverage on Lynas Rare Earths (ASX:LYC) with a Buy rating and a price target of A$7.60. The company highlighted Lynas’ unique position as the only significant producer of separated rare earths outside of China, highlighting its world-class resource base and robust growth prospects.
Lynas Rare Earths is recognized for its extensive growth pipeline and building strong customer relationships. Jefferies highlighted that Lynas is uniquely positioned to play a critical role in creating a supply chain for rare earths that is not dependent on China.
Demand for rare earths is expected to increase, driven by the global push towards electrification and decarbonisation. Lynas’ capabilities are considered essential to meeting the growing need for these materials, which are key in various modern technologies, including electric vehicles and renewable energy systems.
The investment company’s outlook on Lynas is based on the company’s strategic importance in the global rare earths market. With the world increasingly focused on sustainable and clean energy solutions, Lynas’ role is seen as crucial in the supply of these vital components.
Jefferies’ price target of A$7.60 reflects the company’s confidence in Lynas’ prospects and growth potential in the current market environment, where ensuring a stable and diverse supply of rare earths is becoming a priority strategic for many countries.
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