The Lynas Rare Earths Ltd (ASX: LYC) share price is back on form on Wednesday.
In afternoon trade, the rare earths producer's shares are up 3.5% to $8.66.
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Why is the Lynas share price charging higher?
Today's gain by the Lynas share price appears to have been driven by a rebound in the materials sector after some recent weakness.
It isn't just Lynas shares that are rising today. A number of battery materials and iron ore shares are rebounding with it.
For example, the Allkem Ltd (ASX: AKE) share price is up 2%, the Lake Resources N.L. (ASX: LKE) share price is up 2%, and the Rio Tinto Limited (ASX: RIO) share price is trading 1.5% higher.
Where next for Lynas' shares?
While the recent weakness in the Lynas share price has been disappointing for investors, it could have created a buying opportunity.
That's the view of the team at Macquarie. Last week, its analysts put an outperform rating and $12.80 price target on the company's shares.
This suggests that Lynas' shares could climb almost 50% from current levels over the next 12 months.
Macquarie has been impressed with Lynas' production ramp up and believes it is well-placed for strong growth in FY 2023.
