Jefferies analyst Laurence Alexander initiates coverage on Rare Earths Americas (NYSE: REA) with a Hold rating and a price target of $12.30.

The analyst comments: “Rare Earths Americas is a pre-revenue, exploration-stage critical-minerals company with a portfolio focused on dysprosium (Dy) and terbium (Tb)— HREEs where non-Chinese supply is thinnest. A high-grade monazite discovery in Georgia offers a route to concentrate sales, while 2 Brazilian clay deposits offer scale on low-cost processing. Pending clarity on reserves and potential economics, we initiate with a HOLD.

Since it was founded in 2021, Rare Earths Americas has quickly secured projects chosen based on easy-to-process mineralization, potential leverage to fly-ups in heavy rare earths, and a path to avoid vertical integration—even into REO (a step that could add $1.0-$1.5bn to capex). The portfolio pairs a high-grade monazite discoveries in Georgia with two ionic-adsorption-clay resources in Brazil totalling 468m tonnes, and a district-scale niobium and rare earth exploration position in Goias, Brazil.”

For an analyst ratings summary and ratings history on Rare Earths Americas click here. For more ratings news on Rare Earths Americas click here.

Shares of Rare Earths Americas closed at $13.74 yesterday.