Lynas Rare Earths shares fall on Macquarie downgrade
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More news: Shares in Lynas Rare Earth dipped on the ASX after Macquarie downgraded its rating on the miner, following a downturn in first-quarter sales and production.
Lynas shares were down 2.8% to $7.72 by 12:40pm AEDT, making it the third worst performing stock across the ASX 200.
Macquarie downgrades Lynas, shares seen as overvalued
The news: Macquarie downgraded its rating on Lynas Rare Earths after the ASX 200 miner reported a downturn in first-quarter sales and production on Wednesday.
The numbers: Macquarie reduced its rating on Lynas from 'outperform' to 'neutral' but retained its price target of $7.50. Lynas shares last closed at $7.94.
The context: Macquarie analysts said Lynas' lower first-quarter sales and production result was "largely expected", as the miner produced at a lower rate to suit weak market conditions.
However, they flagged that the company's share price performance has exceeded Macquarie's target price and underlying prices for for neodymium and praseodymium (NdPr) — two of Lynas' core products.
The source: Macquarie research
