It was a tough day of trading yesterday for Lynas Rare Earths Ltd (ASX: LYC) and Yancoal Australia Ltd (ASX: YAL) shares.
Both companies experienced share price falls of more than 4.6%.
Let's take a look at what happened
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Lynas Rare Earths crashes after deal
Lynas Rare Earths is primarily involved in the exploration, development, and processing of rare earth minerals in Australia and Malaysia.
On Monday, Lynas Rare Earths signed a major US rare earth supply deal with the United States Department of War (DoW).
Under this arrangement, approximately US$96 million will be allocated by the DoW to the purchase of Light and Heavy Rare Earth oxide products from Lynas. The floor price for supply of NdPr oxide will be US$110/kg.
The proposed agreement covers deliveries over a four-year period.
Despite the news, Lynas shares are now down 6% since this week's open.
Its share price remains up more than 60% year to date and 163% over the last 12 months.
Yancoal hits a speedbump
Meanwhile, Yancoal shares fell 4.9% yesterday, and are also down 6% since Monday.
The company is a coal miner involved in identifying, developing, and operating coal-related projects in Australia.
It has a diversified mix of metallurgical and thermal coal mines. It owns, operates, or participates in 11 coal mines across NSW, Queensland, and Western Australia.
Coal prices have been surging so far in 2026, which has helped Yancoal shares rise more than 50% year to date.
However, coal prices (USD/T) have hit significant volatility over the past week amidst conflict in the Middle East.
Should investors buy the dip?
Recent analysis from brokers indicates Lynas Rare Earths may now be fully valued.
Last week, Lynas signed a major long-term supply agreement with Japan Australia Rare Earths (JARE) guaranteeing revenue of approximately $775 million.
This prompted adjustments from brokers on the outlook for the company.
Despite this good news, an updated price target from Bell Potter now sits at $19.00.
From yesterday's close of $20.02, that still indicates a downside of 5%.
14 analysts' forecasts via TradingView paint a similar picture, with an average one year price target of $20.89.
This indicates the current share price is close to fair value.
Meanwhile, Yancoal shares closed trading yesterday at $7.57 each.
5 analysts forecasts via TradingView have a one year average price target of $7.66.
This suggests this week's pullback was warranted, and there is roughly 1% difference between yesterday's close and the average price target.
