We recently published a list of the 11 Best Australian Stocks to Buy According to Analysts. In this article, we are going to take a look at where ioneer Ltd (NASDAQ:IONR) stands against other best Australian stocks to buy according to analysts.
Australia’s Economic Outlook for 2025
The tariffs announced by the United States have challenged the economic and market outlooks around the globe. On April 7, BlackRock released its quarterly review and outlook for the Australian economy. The report highlighted that the Reserve Bank of Australia (RBA) cut the cash rates to 4.10% after a 0.25% decrease during the first quarter of 2025. This was in line with the expectations, which pointed towards a more dovish approach in the upcoming quarters as well.
Market expectations before the tariffs were announced were that the RBA would reduce the rate by 0.25% in July 2025 and by another 0.25% in November. However, with tariffs in place and market uncertainty, the rate cuts are expected to be in effect sooner than expected. The report anticipates that the RBA will likely cut rates in May this year, followed by at least two more cuts in 2025. The bank decided to keep the rates unchanged during the latest April meeting, as per the report, this was due to the high level of uncertainty that remains around inflation. The data regarding inflation suggests that the underlying inflation continues to ease in line with the forecasts. During the April meeting, the RBA emphasized the importance of keeping the inflation around the midpoint of 2.5%, however, the current forecasts suggest that it will remain over 2.7%, thereby indicating potential rate cuts by the RBA.
In terms of GDP, the Real GDP came in above RBA forecasts during Q4 2024 after growing 1.3% year-over-year. The report attributed this growth to a recovery in household consumption and a strong public demand. Moreover, while the demand side remains healthy, the supply side has been constrained due to a weak labor productivity, indicated by unit labor cost rising 1.7% quarter-over-quarter.
The report also discussed the impact of tariffs on the Australian Economy. In 2024, Australia exported goods worth $24 billion to the United States. This was less than 1% of Australia’s GDP. If we take 2024 figures as a benchmark, this suggests that a 10% tariff on Australia can negatively impact the GDP by $2.4 billion. The report highlights that while the direct impact of tariffs might not be damaging for the economy, however, the indirect impact in terms of the global growth prospects and higher inflation can be risky. On the positive side, the RBA anticipates that tariffs on China can be helpful as it is likely to direct its exports to other markets, including Australia, resulting in local disinflation.
Our Methodology
To compile the list of 11 best Australian stocks to buy according to analysts, we used the Finviz stock screener and CNN. Using the screener, we aggregated a list of Australian stocks with an upside potential of more than 30%. We cross-checked each stock’s upside potential using CNN and ranked the stocks in ascending order. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on May 14, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a hardhat examining a drill head inside a mining facility.
ioneer Ltd (NASDAQ:IONR)
Number of Hedge Fund Holders: N/A
Analyst Upside Potential: 76.95%
ioneer Ltd (NASDAQ:IONR) is an Australian-based mining company that engages in the production of lithium and boron. One of its flagship projects is the Rhyolite Ridge Lithium-Boron Project located in Esmeralda County, USA. This project contains two lithium-boron deposits.
On May 2, Matthew Hope from Ord Minnett maintained a Buy rating on the stock with a price target of A$0.30. ioneer Ltd (NASDAQ:IONR) released its quarterly activities report on April 15. The company highlighted that it secured a $996 million loan from the US Department of Energy under the Advanced Technology Vehicles Manufacturing program. Management noted that this funding supports the development of an on-site processing facility at its Rhyolite Ridge Lithium-Boron Project in Nevada.
Moreover, ioneer Ltd (NASDAQ:IONR) in March 2025 announced an increase in Mineral Resource Estimates for its project. The upgraded estimates indicate a 45% increase, now projecting 510 million tonnes of mineral resources containing 3.97 million tonnes of lithium carbonate equivalent and 14.66 million tonnes of boric acid equivalent. Management noted that these resources are all located within the fully permitted project area approved by the US government in October 2024 and supported by the $996 million DOE loan. Analysts expect significant upside for ioneer Ltd (NASDAQ:IONR) considering the improved projection regarding resources. The company ranks as one of the best Australian stocks to buy according to analysts.
Overall, IONR ranks 10th on our list of best Australian stocks to buy according to analysts. While we acknowledge the potential of IONR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IONR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
