Growth Focus: Lynas Corp Ltd (LYC)

by Patrick Taylor



Date of Data Capture: 14/09/2020

Name: LYNAS CORPORATION LIMITED (LYC)

Classification: Rare Earth Minerals & Mining

Current Price: $2.38

Market Capitalisation: $2.15 B

Forecast EBITDA Growth: 204.86%

Yield Estimate: 0%

Consensus Price Target: $3.23

# Covering Analysts: 5

Discount at Current Price: -35.71%

Price Target Trend (3-Month): Flat-Down -1.82%

Signal Timeframe: Quarterly-Monthly-Daily

Trend Bias: Up-Flat / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive-Neutral
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• Lynas is one of the few rare earths producers operating outside of China, and with Sino/US tensions ongoing, this could be an excellent entry in LYC as it rallies on a strong outlook.
• Performance has been mixed over the last few years, but looks good for a recovery here with excellent analyst sentiment, large discount to price targets, and strong forecasting to 2023.
• Pricing broke major linear resistance in July, before being forced to retreat under the $2.50 resistance ceiling in August, but looks to be setting up a new potential longer-term rally here.
  • Support ($): 2.25, 2.00, 1.75 & 1.50.
  • Resistance ($): 2.50, 2.75, 3.00, 4.00 & 5.00.



Disclaimer

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