** Analysts at Jefferies downgrade rating for Lynas Rare Earths LYC.AX to "hold" from "buy" on valuation grounds; keeps A$12.50 PT unchanged

** Says shares are pricing in the upside from improving rare earths market dynamics, after nearly doubling in the prior month

** Lynas, the world's largest producer of rare earths outside of China, is up ~129% this year

** Says ongoing geopolitical intervention in the rare earths market is continuing to drive price increases

** Says co posted FY underlying operating earnings slightly ahead of Jefferies estimates

** Four of 12 analysts rate the stock "buy" or higher, six "hold" and two "sell" or lower; their median PT is A$10.23 – LSEG data

(Reporting by John Biju in Bengaluru)

((John.Biju@thomsonreuters.com;))