Up 130% in a year, are Lynas Rare Earths shares still a good buy today?

Lynas Rare Earths shares have more than doubled ASX investors' money in a year. Is there still time to buy?

Lynas Rare Earths Ltd (ASX: LYC) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed on Friday trading for $20.70. During the Monday lunch hour, shares are changing hands for $20.39 each, down 1.5%.

For some context, the ASX 200 is down 0.1% today.

Today's underperformance is not the norm for this ASX 200 mining stock this past year.

Indeed, over the past 12 months, Lynas Rare Earths shares have surged 129.6%, smashing the 14.3% one-year gains posted by the benchmark index.

But with the stock having more than doubled in value in a year, has the ship sailed on this opportunity?

Sell buy and hold on a digital screen with a man pointing at the sell square.

Image source: Getty Images

Should you buy Lynas Rare Earths shares today?

Catapult Wealth's Dylan Evans recently ran his slide rule over the ASX 200 mining stock (courtesy of The Bull).

"Lynas remains one of the few rare earths producers outside China, and the strategic value of its Australian location has only become more obvious in the shadow of the war in Iran," Evans said.

And the miner's longer-term outlook recently got a boost, courtesy of Malaysia's government.

"The recent 10-year renewal of the company's Malaysian operating licence provides further certainty, particularly as the Malaysian government has left uncertainty in the past," Evans noted.

But after the big run-up in Lynas Rare Earths shares, Evans isn't ready to pull the trigger on this ASX 200 stock right now, issuing a hold recommendation on Lynas Rare Earths shares.

He concluded, "Sustaining the company's demanding valuation is a challenge, with much of its future potential priced into the share price at recent levels, in our view."

What's been happening with the ASX 200 rare earths miner?

Lynas Rare Earths reported its half-year results (H1 FY 2026) on 26 February.

Among the highlights, the company reported a 63% year-over-year increase in revenue to $414 million. And earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 300% from H1 FY 2025 to $152 million.

On the bottom line, Lynas reported a net profit after tax (NPAT) of $80 million, up 1,260%.

The miner ended the half year with cash and cash equivalents of $1.03 billion.

"Alongside market movements, half year production volume, sales volume, revenue and average selling price all increased from the prior corresponding period," Lynas CEO Amanda Lacaze said.

Lynas Rare Earths shares closed up 1.2% on the day of the results release.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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