Avalon Rare Metals (NYSE:AVL) Trading Near Top Says Laurentain

Now that the recent move in rare earth companies seems to have abated, Avalon Rare Metals (NYSE:AVL) seems to have the China news priced into the shares now.

Laurentain said, "Following the continuing rise in rare metal prices over the past two months since our initiation report, we have increased our long-term price forecast by 10%... We believe recent export restrictions and increased duties on rare earths in 2011 could further increase pricing in the coming months... With the recent off-take and financing agreements signed by Molycorp (NYSE:MCP) and Lynas, we believe the overall risk in this sector has declined as an increasing number of consumers are looking to secure supply outside of China."

Laurentain Bank downgraded Avalon Rare Metals from "Buy" to "Hold." Avalon closed at $6.53 on Friday, gaining $0.13, or 2.03 percent. Laurentain boosted their price target on them from $4.40 to $6.10 even with the downgrade.