Lynas Rare Earths December-quarter production outpaced Ord Minnett's forecast by 10%, coinciding with record prices, but higher costs and working capital triggered a material earnings miss.

The broker doubts price momentum can be sustained, notes a long-awaited capital expenditure splurge is building, and believes its poor prognosis remains valid.

Lighten recommendation retained. Target price eases to $4.50 from $4.60.

Sector: Materials.

Target price is $4.50.Current Price is $9.24. Difference: ($4.74) - (brackets indicate current price is over target). If LYC meets the Ord Minnett target it will return approximately -105% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena