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Analysts are still pounding the table over MP Materials (MP).
That’s because the fight to secure more rare earth supply is still heating up. Granted, China did pause its rare earth restrictions for a year. However, there is still a strong possibility of more rare earth supply issues, which MP Materials can assist with.
The last time we mentioned MP, it traded at around $58 on November 20.
Today, it’s up to $63.12 and could race back to $80 near-term.
For one, it operates the Mountain Pass mine in California.
Two, the U.S. Department of Defense announced it was buying $400 million worth of MP’s preferred stock – positioning itself as the company’s biggest shareholder. And three, MP signed a $500 million deal with Apple, which agreed to buy rare earth magnets from it.
In addition, analysts see the stock rallying even higher.
Morgan Stanley just upgraded MP Materials to an overweight rating with a price target of $71 a share. While China did pause its rare earth restrictions for a year, there is still a strong possibility of more rare earth supply issues, which MP Materials can assist with.
Analysts at JPMorgan upgraded the miner to an overweight rating with a price target of $74 a share. “Our new rating reflects our view that rare earths national security concerns are ‘here to stay’ despite China’s reported one-year pause on export restrictions, with risks remaining, especially for military exposure,” they said, as quoted by CNBC.
“MP’s unique mine-to-magnet vertical integration positions the company as the ex-China leader ready to immediately begin addressing these concerns, although it will ultimately take multiple players over many years to sort out.”
Rare Earth Stock USA Rare Earth Has Been Just as Explosive
Over the last few days, shares of USA Rare Earth (USAR) jumped from about $11.45 to $17.21. All after the company announced that its Less Common Metals subsidiary signed an agreement to supply Solvay and Arnold Magnetic Technologies Corporation with high-quality rare-earth materials for Arnold's production of advanced permanent magnets.
The last time we highlighted an opportunity on USAR was on November 17, as it traded at $14.50. Now up to $17.28, we’d like to see USAR race back to $25 near term.
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