Lynas Rare Earths Ltd (ASX: LYC) shares have been a market winner over the last year.
In the previous 12 months, its share price has risen approximately 122%.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 12.44% in the same span.
Lynas has recently hit 52-week and multi-year highs.
Image source: Getty Images
What's behind the big rise?
Lynas is primarily involved in the exploration, development, and processing of rare earth minerals in Australia and Malaysia. It is one of the few rare earth producers outside of China.
Positive production has been a catalyst for its share price gain over the last year.
The company revealed record quarterly production of neodymium (Nd) and praseodymium (Pr) during the March quarter – a 16.7% increase from the previous quarter.
These two rare earth elements are utilised in electric vehicles (EVs), wind turbines, as well as consumer electronics.
The production continued in the most recent quarter.
Lynas produced 3,212 tonnes of REO during the fourth quarter – 19% higher than estimates.
Additionally, NdPr output of 2,080 tonnes was 17% above market expectations.
This increased production likely boosted investor sentiment during the last 6 months, in which the share price rose almost 100%.
Is it too late to buy Lynas Rare Earths stock?
Yesterday (August 13), Lynas Rare Earths stocks closed at $13.63 a piece.
It seems this is a little too rich for some brokers.
Last month, Macquarie placed a price target of $9.00 on the mining stock.
This indicates a downside of nearly 34%.
Broker Bell Potter has an even more negative outlook. It has a sell recommendation and price target of $7.65.
This indicates a downside of almost 44%.
It seems these experts believe it is an opportunity for profit-taking for those who have held through the last 12 months.
