Rainbow Rare Earths (LON:RBW) Stock Price Up 0.7% - Should You Buy?

Key Points

• Rainbow Rare Earths Limited (LON:RBW) shares increased by 0.7% to GBX 14.50, with a trading volume of 616,621, down 13% from its average.
• Analysts from Berenberg Bank maintained a "buy" rating for the stock with a target price set at GBX 34, contributing to its consensus buy rating and an average target price of GBX 27.50.
• The company is focused on developing ethical supply chains for rare earth elements through projects in South Africa and Brazil, aiming to support the green energy transition.

Shares of Rainbow Rare Earths Limited (LON:RBW - Get Free Report) rose 0.7% on Monday . The stock traded as high as GBX 14.75 ($0.20) and last traded at GBX 14.50 ($0.20). Approximately 616,621 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 710,136 shares. The stock had previously closed at GBX 14.40 ($0.19).

Analyst Upgrades and Downgrades

Separately, Berenberg Bank restated a "buy" rating and set a GBX 34 price target on shares of Rainbow Rare Earths in a research note on Thursday, July 10th. Two analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of GBX 27.50.

Rainbow Rare Earths Price Performance

The company has a 50 day simple moving average of GBX 13.74 and a 200 day simple moving average of GBX 11.87. The company has a quick ratio of 3.79, a current ratio of 0.21 and a debt-to-equity ratio of 3.34. The company has a market capitalization of £99.86 million, a price-to-earnings ratio of -2,066.67 and a beta of 2.25.

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.