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Investing.com - BMO Capital upgraded MP Materials (NYSE:MP) from Market Perform to Outperform while slightly lowering its price target to $75.00 from $76.00. The stock currently trades at $55.27, with analyst targets ranging from $68.50 to $112.00.
The upgrade comes despite recent pullbacks in rare earth prices following China’s removal of export restrictions on rare earth materials.
BMO Capital noted that the United States’ vulnerability in the rare earth supply chain remains "blatantly apparent" and believes this situation does not weaken the long-term investment thesis for MP Materials.
The firm cited potential upside from MP Materials’ joint venture in Saudi Arabia as a factor in its positive outlook for the company.
BMO Capital stated that MP’s "strategically important assets will continue to warrant a premium multiple versus peers" and considers the current stock valuation "an attractive entry point" following recent price declines.
In other recent news, MP Materials Corp. has entered into a joint venture with the U.S. Department of War and Saudi Arabian Mining Company (Maaden) to establish a rare earth refinery in Saudi Arabia. This agreement is part of a strategic cooperation framework between the United States and Saudi Arabia to secure critical mineral supply chains. The initiative aims to rebalance the global rare earth supply chain and enhance U.S. economic and national security interests. Additionally, Goldman Sachs has initiated coverage on MP Materials with a Buy rating, citing the company’s dominance in rare earth production in the Western Hemisphere. DA Davidson has reiterated its Buy rating for the company, highlighting the gradual increases in NdPr oxide output and advancements in magnetics operations. JPMorgan has also upgraded MP Materials’ stock to Overweight, noting ongoing national security concerns related to rare earths. These developments reflect growing confidence in MP Materials’ strategic position and potential for future growth.
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