Lynas Rare Earths Ltd (ASX: LYC) shares are down around 6% in Thursday lunchtime trade, to $13.04 a piece.
Today's slump means the shares have now fallen 16% over the past month, but they're still around 7% higher for the year-to-date.
It's been a rocky start to the year for the ASX rare earths miner. Geopolitical volatility, higher costs, and investors taking their gains off the table after a strong rally earlier this year have all acted as strong headwinds for the Lynas Rare Earths share price.
The miner's FY26 results announcement in late-August hasn't helped sentiment either.
The company posted a record FY26 profit and revenue, as company growth continues to ramp up. It reported a 76% increase in revenue and a 282% increase in EBITDA. Lynas Rare Earths also confirmed it is focused on ramping up new assets in FY27 and growing its global presence.
But the miner's $222.4 million net profit was a miss versus analysts expectations of around $242.5 million. And it raised red flags about costs going forward.
Image source: Getty Images
Why are the shares falling again today?
Ahead of the ASX open this morning, Lynas Rare Earths announced plans to acquire all shares in Meteoric Resources Ltd (ASX: MEI) via an all-scrip deal, valued at approximately A$968 million.
Meteoric shareholders will receive 0.0207 new Lynas shares per Meteoric share held, while Lynas Rare Earths boosts its resource base, including the largest ionic clay rare earth resource outside China.
As part of the announcement, the company also flagged that it is moving forward with plans to diversify its resource base, expanding its global footprint and enhancing supply of critical minerals at a time of robust demand.
The company said that investors should watch for further announcements as the deal moves through regulatory and shareholder processes into early 2027.
Again, it looks like investors are spooked about the execution risk surrounding the deal, and many are offloading their shares.
Are Lynas Rare Earths a buy, sell or hold now?
It looks like analysts are more excited by the ASX mining company's potential than the company's shareholders.
Market Index data show they expect Lynas' shares to jump again this year. The majority of brokers have a strong buy rating on the miner's shares, and the $19.56 average target price implies a potential 50% upside, at the time of writing.
Sentiment is similar on TradingView. The majority (11 out of 16) of analysts have a buy/strong buy rating on the shares. The $18.71 average target price implies an upside of around 44%. Whereas, the more bullish of the bunch think Lynas Rare Earths shares could climb 77% higher to $23 over the next 12 months, at the time of writing.
