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Investing.com - MP Materials (NYSE:MP) stock rating was upgraded to Overweight from Neutral by JPMorgan on Friday, with a price target of $74.00, down slightly from $75.00. MP Materials, currently trading at $57.54 with a market cap of $10.2 billion, has shown significant price volatility with a beta of 1.7.
The upgrade follows MP Materials’ third-quarter results and reflects JPMorgan’s view that rare earths national security concerns will persist despite China’s reported one-year pause on export restrictions. The price target implies approximately 29% upside potential. InvestingPro data shows analyst targets ranging from $68.50 to $112, with additional ProTips highlighting key strengths and challenges facing the company.
JPMorgan highlighted MP Materials’ unique mine-to-magnet vertical integration, positioning the company as the leading non-Chinese producer ready to address these security concerns. The firm noted that the $110/kg NdPr price floor from the company’s Department of Defense deal took effect October 1.
MP Materials shares have declined 39% over the past month, compared to a 1% gain in the S&P 500 and a 14% drop in the S&P Metals & Mining ETF, while NdPr pricing increased 2% during the same period.
JPMorgan views the recent share price weakness as an attractive entry point, though it acknowledged that addressing rare earth supply chain concerns will ultimately require multiple companies and many years to resolve. According to InvestingPro Fair Value analysis, MP Materials appears overvalued at current levels. For deeper insights, check out MP’s comprehensive Pro Research Report, part of InvestingPro’s analysis of 1,400+ US equities.
In other recent news, MP Materials reported its third-quarter 2025 earnings, which showed a slight miss on revenue forecasts and a smaller-than-expected loss per share. The company highlighted a 21% sequential increase in NdPr oxide production and noted significant strategic advancements during its earnings call. Despite these developments, the earnings report led to a decline in the company’s stock during regular trading hours. In another development, Deutsche Bank upgraded MP Materials from Hold to Buy, raising its price target to $71.00 from $68.00. Deutsche Bank’s upgrade reflects its view that MP Materials presents a buying opportunity for investors interested in critical minerals and rare earth elements over the medium to long term. These recent developments provide investors with insights into MP Materials’ current financial and strategic positioning.
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