Rainbow Rare Earths (LON:RBW) Shares Down 11.9% – Should You Sell?

Rainbow Rare Earths Limited (LON:RBW) dropped 11.9% on Friday . The stock traded as low as GBX 18.50 and last traded at GBX 18.50. Approximately 1,143,013 shares were traded during mid-day trading, an increase of 10% from the average daily volume of 1,042,911 shares. The stock had previously closed at GBX 21.

Analysts Set New Price Targets

Separately, Berenberg Bank reissued a “buy” rating and set a GBX 33 target price on shares of Rainbow Rare Earths in a research report on Monday, November 10th. One equities research analyst has rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of GBX 33.

Rainbow Rare Earths Price Performance

The company’s 50-day simple moving average is GBX 19.11 and its 200-day simple moving average is GBX 15.26. The company has a market cap of £125.63 million, a price-to-earnings ratio of -39.80 and a beta of 2.25. The company has a debt-to-equity ratio of 3.34, a current ratio of 0.21 and a quick ratio of 3.79.

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.