The Lynas Rare Earths Ltd (ASX: LYC) share price fell 4.6% on Friday, now down 24.6% over the past six months.
Shares of the rare earth mining company finished Friday at $8.30 each. During the session, they made an intraday high of $8.68 each.
The S&P/ASX 200 Materials Index (ASX: XMJ) has declined less over the past six months, losing 14.89%.
So the Lynas share price has clearly been sold off. The question is whether investors should fill their bags with the company's shares or not?
Recently Lynas was put under a bullish spotlight courtesy of a broker. Let's find out what they said.
What did the broker say?
Lynas was named among five ASX rare earth production shares by Datt Capital chief investment officer Emanuel Datt as being hot picks, as the Motley Fool reported previously.
These rare earth companies were chosen due to the rising geopolitical tensions between China and the West.
Datt said:
Should the Taiwan situation worsen and/or should China use force to control Taiwan, it's likely there will be sanctions on goods sold to China and restrictions of the supply of strategic materials exported by China.
Datt continued:
China produces around 80% of the rare earth elements globally. And given their critical nature in the production of a wide range of modern technologies, a logical first step would be China restricting this supply to the rest of the world in which it is in disagreement.
Besides recommending Lynas, it was also reported that Datt personally bought an undisclosed amount of Lynas shares, cementing his opinion that the company is the "gold standard" of rare earth producers.
Lynas reported its earnings Friday last week, which sent its share price soaring on 244% gains, amid my Fool colleague Tony observing "revenue, net profit and earnings all made massive leaps".
Lynas Rare Earths share price snapshot
The Lynas share price is down 24.8% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is only down 10% over the same period.
The company's market capitalisation is $7.85 billion.
