The rare earths industry has been booming over the past 12 months because of strong demand and tight supply.
The good news is that these conditions are expected to remain for the foreseeable future, which could make it worth having some exposure to ASX rare earths stocks.
The team at Wilsons has been looking at this side of the market and is feeling very positive. It said:
The rare earth market is benefiting from a powerful combination of structural demand growth, constrained supply and increasing policy support for ex-China supply chains. These dynamics are expected to support elevated rare earth prices while also strengthening demand for, and the pricing outcomes of, Western supply in particular.
But which shares could be buys for rare earths exposure? Let's take a look at three that Canaccord Genuity is bullish on, courtesy of Wilsons. They are as follows:
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Brazilian Rare Earths Ltd (ASX: BRE)
Canaccord Genuity thinks investors with a high tolerance for risk should look at this rare earths developer.
It has put a speculative buy rating and $8.00 price target on this Brazil-focused ASX rare earths stock. Based on its current share price of $4.70, this implies potential upside of 70% for investors over the next 12 months. It said:
Highest grades we have come across at the Monte Alto discovery in Brazil – partnership with Carester, upcoming Resource/ Scoping for integrated oxide production + bauxite spinout offer potential catalysts.
Iluka Resources Ltd (ASX: ILU)
Another ASX rare earths stock that is highly rated is Iluka. Although its mineral sands business is weighing on its performance, its exposure to rare earths with the Eneabba project is seen as a reason to buy.
Canaccord Genuity has a buy rating and $6.55 price target. However, this is largely in line with where its shares currently trade.
Commenting on the stock, the broker said:
Mineral sands business suffering from structural issues, but Eneabba provides medium-term exposure + a possible beneficiary of Australian Critical Minerals Reserve floor pricing.
Meteoric Resources NL (ASX: MEI)
A final ASX rare earths stock that gets the thumbs up from the broker is Meteoric Resources.
Canaccord Genuity has put a speculative buy rating and 40 cents price target on its shares. This is more than double its current share price.
Commenting on the Brazil-based developer, it said:
Low capex/low cost IAC development project in Brazil approaching major milestones (BFS/approvals/ funding/FID) in mid'26.
