J.P.Morgan has upgraded Lynas (LYC) to Buy from Neutral with a target price of $0.60 (current price $0.47) after a more detailed examination of the rare earths...

J.P.Morgan has upgraded Lynas (LYC) to Buy from Neutral with a target price of $0.60 (current price $0.47) after a more detailed examination of the rare earths market. The broker concedes that although most of the market is in oversupply, elements such as Neodymium-Praseodymium appear structurally short which is good news for Lynas. There are risks as the valuation is dependent on higher prices, however, the stock is now ridiculously cheap according to the broker. PER for the stock is 11.63 and if LYC meets the target price it will return approximately 29%.