The Lynas Rare Earths Ltd (ASX: LYC) share price is back on form on Wednesday.
In afternoon trade, the rare earths producer’s shares are up 3.5% to $8.66.
Why is the Lynas share price charging higher?
Today’s gain by the Lynas share price appears to have been driven by a rebound in the materials sector after some recent weakness.
It isn’t just Lynas shares that are rising today. A number of battery materials and iron ore shares are rebounding with it.
Where next for Lynas’ shares?
While the recent weakness in the Lynas share price has been disappointing for investors, it could have created a buying opportunity.
That’s the view of the team at Macquarie. Last week, its analysts put an outperform rating and $12.80 price target on the company’s shares.
This suggests that Lynas’ shares could climb almost 50% from current levels over the next 12 months.
Macquarie has been impressed with Lynas’ production ramp up and believes it is well-placed for strong growth in FY 2023.
The post Why is the Lynas share price storming higher today? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns Allkem shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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