Ord Minnett remains cautious on elevated Neodymium-praseodymium (NdPr) prices and operational and project risk for Lynas Rare Earths.

Despite such misgivings, the broker raises its target to $4.60 from $4.30. Lighten rating retained on valuation concerns.

The analyst increases the FY22 NdPr price forecast to US$98/kg from US$80/kg, which offsets lower utilisation assumptions. The NdPr price is approaching 10-year highs.

Sector: Materials.

Target price is $4.60.Current Price is $8.91. Difference: ($4.31) - (brackets indicate current price is over target). If LYC meets the Ord Minnett target it will return approximately -94% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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