** Analysts at Bell Potter raise their valuation of Australia's IperionX IPX.AX stock to A$9.25 from A$7.90, noting increased capacity and expansion by the titanium alloys producer

** Shares rise as much as 6.4% to A$7.54, hitting a record high

** Co announced on Tuesday it has lowered production costs of titanium powder to US$55/kilogram from US$75/kilogram, and expects to expand capacity at its Virginia titanium manufacturing plant to 1,400 tonnes p.a. by mid-2027

** IPX has the potential to disrupt the titanium supply chain by materially lowering production costs and manufacturing waste - Bell Potter

** Analysts expect co to deepen commercial relationships with users and see it benefiting from increased defence sector spending given co's focus on US-based manufacturing

** Maintains 'buy' rating

** Stock last up 5.1%, lifting YTD gains to 36.3%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))