The Lynas Rare Earths Ltd (ASX: LYC) share price has been a poor performer on Thursday.
In afternoon trade, the rare earths producer's shares are down over 5% to $7.95.
Image source: Getty Images
What's going on with the Lynas share price?
Investors have been hitting the sell button today despite there being no news out of the company.
However, it is worth noting that a large number of battery and critical minerals shares are under the pump on Thursday.
This appears to have been driven by the Tesla investor day event, which seems to have disappointed the market.
It's possible that investors were hoping that Tesla would increase its target of producing 20 million electric vehicles per year by 2030. However, these targets were reiterated by executives according to CNBC.
Should you buy the dip?
According to a note out of Bell Potter from earlier this week, it appears to believe that investors should sit tight and wait for a better entry point. Particularly after its half-year results fell short of expectations.
Commenting on the results, it said:
LYC reported its 1HFY23 earnings today, Revenue of A$370m was 6% lower than our estimates (BPe $391m). Costs of goods sold ex-depreciation (COGS) were $185m vs BPe $158m, increasing 62% higher vs 1HFY22a. Ebitda was therefore 10% lower than we forecast, at $189m vs BPe $209m and in-line with 1HFY22a.
As a result, Bell Potter has retained its neutral rating with a $8.15 price target. This implies minimal upside from where its shares are currently trading.
