** Jefferies sees Australia's Lynas Rare Earths LYC.AX as key beneficiary of global momentum in developing rare earths supply chain independent of China, but says most upside is already priced in at current prices

** Adds that co's annualised gross sales revenue of ~A$800m already puts it on 19x sales multiple

** Brokerage reiterates 'hold' rating, upgrades PT slightly to A$15 from A$14.50

** LYC on Wednesday posted 43% y-o-y rise in Q2 revenue to A$201.9 million ($135.98 million), with 73.9% y-o-y jump in average selling price to A$85.6

** Jefferies says price jump reflects that co has utlilised tight spot supply conditions and favourable policy sentiment to price products independent of China dominated market index

** Brokerage adds China-Japan tensions serve as potential considerable opportunity for LYC in short to medium term

** Stock rose 93.5% in 2025 and is up 30.8% YTD

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))