BUZZ-Australia's Lynas Rare Earths deserves a valuation premium - Macquarie

Reuters04-26

** 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;))

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