Shares of Australia’s Lynas Rare Earths (ASX:LYC) have experienced an increase, rising up to 1% to reach A$6.87.

This follows analysts at UBS upgrading their stock rating from ‘neutral’ to ‘buy’.

UBS has acknowledged the rising prices of Neodymium-Praseodymium (NdPr) Oxide, crucial elements in the rare earth industry outside China for which Lynas is a major producer.

However, UBS maintains its set price target for the shares at A$8 per unit.

Although they have optimistically reviewed their NdPr price outlook, UBS remains cautious of the competitive China-dominated market.

Out of 13 analysts, twelve rate Lynas Rare Earths' stock as ‘buy’ or higher, while one rates it as ‘hold’; the median price target stands at A$8.90.

Despite these promising assessments, Lynas Rare Earths' stock has seen a 13.4% decrease this year, as of the last close.

Lynas Rare Earths is a major producer of rare earths outside China.