BMO Opens Lynas Coverage at Outperform as Record Prices Meet a Soft Revenue Print
Published on 11/08/2026 at 04:52 | Editorial boerse-global.de
BMO Capital initiated coverage of Lynas Rare Earths on Monday with an "Outperform" rating and a price target of A$17. Media reports describe the move as a first-time launch of coverage rather than an upgrade of an existing recommendation — a fresh vote of confidence arriving just days after the rare earths producer's September-quarter update fell short on the top line.
That update, released on 29 October, covered the first quarter of fiscal 2027. Lynas booked gross revenue of A$310.1 million for the three months, a 55% jump on the prior-year period. Reuters attributed the growth to record realized prices and minimum-price agreements, which according to the company covered more than half of production. The average selling price climbed 88% to A$102.1 per kilogram.
Even so, the revenue figure landed 18.2% below the Visible Alpha consensus estimate, according to Reuters. The double-digit topline advance therefore came without a beat against market expectations.
Should investors sell immediately? Or is it worth buying Lynas Rare Earths?
Output and shipments diverge
On the operational side, Lynas produced 4,254 tonnes of rare earth oxides in the September quarter. NdPr accounted for 2,082 tonnes of that total, per company figures cited by Reuters. Sales of rare earth oxides reached 3,039 tonnes in the same period, leaving shipments below the volume produced.
Investors will get a smaller production number in the December quarter. Lynas has flagged planned maintenance shutdowns in Malaysia and at Kalgoorlie, disclosed roughly a week to two weeks before the quarterly report, which the company says will weigh on output in the current period. The guidance sets up a contrast: record prices banked in the quarter just closed, against a near-term dip in volumes.
A stock that gave back its gains
The market's initial response to the 29 October release was a share price advance, which reversed into a decline on 30 October. The most recent Friday brought a further retreat, albeit a modest 0.4%.
A retrospective published Friday on fiscal 2026 also drew attention to higher rare earth selling prices and production of heavy rare earths. That piece was an assessment of the prior year's business performance rather than a new company disclosure — and it concerns fiscal 2026, whereas the October quarterly figures already sit in fiscal 2027.
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