Rainbow Rare Earths (LON:RBW) Sets New 1-Year High - Should You Buy?

Key Points

• Rainbow Rare Earths Limited (LON:RBW) reached a new 52-week high of GBX 18.50 ($0.25) amid significant trading volume of almost 3.75 million shares.
• Analysts from Berenberg Bank have a "buy" rating for the stock, with a target price of GBX 34, while the average target price is set at GBX 27.50.
• The company focuses on developing rare earth elements for the green energy sector, particularly through projects in South Africa and Brazil.

Rainbow Rare Earths Limited (LON:RBW - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as GBX 18.50 ($0.25) and last traded at GBX 17.80 ($0.24), with a volume of 3749976 shares traded. The stock had previously closed at GBX 17 ($0.23).

Wall Street Analysts Forecast Growth

Separately, Berenberg Bank reiterated a "buy" rating and issued a GBX 34 price objective on shares of Rainbow Rare Earths in a report on Monday, September 1st. Two research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Rainbow Rare Earths has a consensus rating of "Buy" and an average target price of GBX 27.50.

Rainbow Rare Earths Trading Down 1.7%

The stock has a 50 day simple moving average of GBX 14.35 and a 200-day simple moving average of GBX 12.04. The firm has a market capitalization of £110.81 million, a P/E ratio of -2,293.33 and a beta of 2.25. The company has a current ratio of 0.21, a quick ratio of 3.79 and a debt-to-equity ratio of 3.34.

Rainbow Rare Earths Company Profile

Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the permanent magnet rare earth elements neodymium and praseodymium, dysprosium and terbium. The Company is focused on the development of the Phalaborwa Rare Earths Project in South Africa and the earlier stage Uberaba Project in Brazil.