- Lynas Corporation has seen its shares in red in 2022, attracting dib buyers.
- Recently, a broker named Lynas “gold standard” in rare producers’ space.
- His analysis hinges on escalated geopolitical worries between the Western and China.
The Lynas stock price has plummeted substantially within the past six months. Time to buy?
The Lynas Rare Earths company saw its share price plummeting by 4.6% yesterday, losing more than 24.6% within the last six months. The rare earth mining firm’s shares ended Friday at $8.30. Meanwhile, the session had the stock hitting an $8.68 intraday high.
The ASX/S&P 200 Materials Index noted a less dip in the last six months, dropping 14.89%. That means LYC endured a sell-off. The question remains, should investors capitalize on the discounted prices? Recently, a broker sent a bullish case to Lynas stock price.
The Broker Comments
Datt Capital CIO Emanuel Data named Lynas among the top five ASX earth shares. These rare earth firms popped up because of the soaring geopolitical worries between the West and China. Datt stated that China using force over Taiwan would attract sanctions on imports to China & restrictions on the supply of tactical materials to China.
He added that China produces nearly 80% of global rare earth elements. Moreover, the distinct nature of its many modern technologies welcomes the narrative of China taking the initial step to restrict supply to the entire world.
Besides endorsing Lynas, reports show Datt purchased undisclosed Lynas shares amount. That cemented his argument that the firm is the rare earth producers’ gold standard. Meantime, Lynas published its financials last week (Friday). The share price reacted to the earnings with a 244% surge. Meanwhile, net profits, revenue, and earnings recorded massive leaps.
LYC Share Price Snapshot
The Lynas stock price lost 24.8% YTD. On the other side, the ASX/S&P 200 Index only dropped 10% in that timeframe. Lynas has a market cap of $7.85 billion. The geopolitical tension between the West and China can determine possible share price actions in the coming sessions. Nevertheless, the global financial space remains uncertain.
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