Lynas's partnership agreement with South Korean magnet producer JS Link is "an incremental positive and a supportive sentiment driver," says Morgan Stanley. The arrangement helps lock in outside-China demand for future neodymium-praseodymium volumes, MS says. That is important for Lynas's ramp-up toward 10,500 metric tons of annual production, as ex-China demand likely remains a key constraint, says the bank. Yet it's unlikely to have a material impact on earnings estimates, given market consensus is already factoring in a rise in production to 11,400 tons in FY 2028 from roughly 7,600 tons in FY 2026, it says. MS has an equal-weight rating and A$20.45 target on Lynas. Shares are down 3.3% at A$17.47 amid a broad-based retreat in Australian mining stocks. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
Dow Jones Newswires
Lynas Deal With JS Link Good For Investor Sentiment — Market Talk
- Sources
- Dow Jones Newswires
- Markets
- Stocks
- Active symbols
- ASX:LYC
- Language
- English
Lynas's partnership agreement with South Korean magnet producer JS Link is "an incremental positive and a supportive sentiment driver," says Morgan Stanley. The arrangement helps lock in outside-China demand for future neodymium-praseodymium volumes, MS says. That is important for Lynas's ramp-up t…