** Analysts at Macquarie say they believe Lynas Rare Earths
deserves a premium in its valuation
** Says premium could be unlocked if there is a potenital merger for co and on the back of the rare earths miner's processing capability
** Maintains PT at A$7 despite co's 3Q sales being soft
** However, lowers EPS ests on co for FY24 by 3% and less than 1% for FY25 and ahead
** Higher capex at Kalgoorlie plant highlights complexity of rare earths and a potential slower supply response, a silver lining for LYC - Macquarie
** Stock has fallen 10.9% YTD, as of last close
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com;))