<div id="readability-page-1"><div>** Shares of Australia's Lynas Rare Earths fall 4.8% to A$12.95, their lowest since November 5 ** Morningstar initiated coverage of co's stock, pegging its fair value estimate at A$7** Investment research firm sees co's EBITDA surging to a 5-year CAGR of 65%, fuelled by rising sales and firmer prices of NdPr, which is used in electric vehicle magnets** However, it flags that shares look overpriced despite robust growth prospects, with market baking in lofty rare-earth assumptions** Adds, hitting the current share price would require a mid-cycle NdPr price tag of ~$220/kg, more than double Morningstar's view of $100/kg** Shares have more than doubled in value YTD </div></div>

LYSDY

Morningstar initiated coverage of Lynas Rare Earths, estimating its fair value at A$7, while shares fell 4.8% to A$12.95. Despite a projected 65% EBITDA CAGR, shares are deemed overpriced, requiring NdPr prices of ~$220/kg to justify current levels, double Morningstar's $100/kg view. Shares have doubled YTD.

Australia's Lynas hits one-month low after Morningstar flags shares as overpriced