Revenue was 6% of ahead of UBS estimates in the December quarter. The broker likes the company’s strategic position as the only producer of rare earths outside of China, for which demand is set to double by 2025.
UBS downgrades near-term commodity assumptions, as prices during 2019 were below forecasts. This drives a -26% downgrade to FY20 operating earnings estimates and -16% downgrade to FY21. Buy rating and $3 target maintained.
Sector: Materials.
Target price is $3.00.Current Price is $2.36. Difference: $0.64 – (brackets indicate current price is over target). If LYC meets the UBS target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
