0340 GMT - Lynas Rare Earths' equity raise makes sense given the recent improvement in market sentiment, Citi analyst Samuel Schubert says. However, the timing and structure of the raise suggests Lynas may not benefit from the same favorable terms as U.S. peer MP Materials, namely a US$110/kilogram neodymium-praseodymium price floor, says Schubert. He highlights the lack of direct government participation or official rare-earth price floor backing the A$750 million capital raise. "The market may perceive this as a signal that government support is not forthcoming immediately, reinforcing the view that sentiment has peaked and that near-term valuation is vulnerable to reset," Schubert says. Citi reiterates a sell rating on Lynas, although it raises its target sharply to A$9.50/share from A$5.50 before. Lynas is down 6.1% at A$13.83. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

August 28, 2025 23:40 ET (03:40 GMT)

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