Highlights

  • Macquarie has assigned Outperform ratings to Iluka and Lynas Rare Earths.
  • The broker set price targets of AUD 6.50 for ILU and AUD 17.50 for LYC.
  • The ratings follow recent quarterly updates detailing production volumes, revenue figures and cash positions.

Macquarie Group’s research team has issued Outperform ratings on two ASX‑listed rare earths stocks — Iluka Resources Ltd (ASX:ILU) and Lynas Rare Earths Ltd (ASX:LYC). The updates come amid continued investor attention on critical minerals and rare earth elements that are used in renewable energy, defence, electronics and other advanced manufacturing applications.

Macquarie Sets New Benchmarks

Macquarie has updated its rating on Iluka Resources Ltd (ILU) to Outperform, with a target price of AUD 6.50, up from prior assessments. The company’s shares have traded around AUD 5.34 recently and have shown a gain over the past year.

Key highlight points:

  • Macquarie’s target price for ILU is AUD 6.50.
  • ILU’s mineral sands and rare earths operations reported higher volumes in the latest quarterly review.

In the quarterly results to 31 December 2025, ILU reported a Q4 2025 zircon/rutile/synthetic rutile production of 155 kt, exceeding the previous quarter. Full‑year 2025 production of 559 kt also exceeded Iluka’s guidance, driven by optimised material processing at key facilities. Based on company disclosures, zircon sand sales included 30 kt and synthetic rutile sales of 56 kt in Q4 2025, while full‑year unit cash costs of production remained below guidance. Other developments cited include the commencement of mining at Balranald, and continued investment in the Eneabba rare earths refinery project.

Rare Earths Focus on Lynas

For Lynas Rare Earths Ltd (LYC), Macquarie has also assigned an Outperform rating and set a target price of AUD 17.50. The stock has been trading in the range of AUD 15.20 recently, with its share value more than doubling over the past year.

Key highlight points:

  • Macquarie’s target price for LYC is AUD 17.50.
  • Lynas has reported consistent quarterly sales revenue.
  • Cash reserves and sales receipts remain at notable levels.

In Lynas’s quarterly figures, sales revenue rose to AUD 201.9 million and sales receipts reached AUD 185.0 million, indicating continued commercial activity. Closing cash and short‑term deposits were reported around AUD 1,030.9 million, while total rare earth oxide (REO) production in the period was 2,382 t. These operational outcomes were noted in company updates released in January 2026.

Macquarie’s Outperform ratings on Iluka Resources (ILU) and Lynas Rare Earths (LYC) — accompanied by updated target prices of AUD 6.50 and AUD 17.50 respectively — offer fresh broker perspectives on these ASX rare earths stocks. The ratings might follow recent operational reports from both companies, including production figures, sales outcomes and cash positions.

FAQ

Q1: What does an ‘Outperform’ rating mean for ASX stocks?
An Outperform rating indicates that the broker expects a stock to perform better than the broader market average over a specific time frame compared with peers or the benchmark index.

Q2: What are the new target prices set by Macquarie for ILU and LYC?
Macquarie set a target price of AUD 6.50 for ILU and AUD 17.50 for LYC, which informs potential valuation expectations from the broker’s research. (MarketScreener)

Q3: What recent data did ILU and LYC report in their quarterly updates?
Recent releases show ILU’s Q4 2025 production and sales figures, while LYC’s quarterly results included revenue, cash holdings and REO production for the period, as disclosed in company reports.