USA Rare Earth stock maintains Buy rating at Benchmark on strong outlook

Published 13/08/2025, 15:56
USA Rare Earth stock maintains Buy rating at Benchmark on strong outlook

Investing.com - Benchmark maintained its Buy rating and $15.00 price target on USA Rare Earth Inc (NASDAQ:USAR) on Wednesday. The stock, currently trading at $17.59, has shown remarkable momentum with a 78.34% return over the past year and is trading near its 52-week high of $20.

The research firm cited a promising update from the company that indicated strong customer interest, an earlier commissioning phase, and better-than-expected magnet sales forecast for 2026. According to InvestingPro data, the stock’s technical indicators suggest overbought conditions, with 13 additional real-time signals available for subscribers.

USA Rare Earth has sufficient liquidity to fund $60 million of capital expenditures through year-end along with ongoing cash burn, according to Benchmark’s analysis.

The company currently holds approximately $130 million in cash on hand, providing substantial financial flexibility for its near-term operational needs.

USA Rare Earth also has approximately $200 million in outstanding warrants, further strengthening its potential financial position as it moves toward its accelerated commissioning timeline.

In other recent news, USA Rare Earth Inc. reported its second-quarter 2025 earnings, revealing an adjusted net loss of $0.08 per share, which was worse than analysts’ expectations of a $0.06 per share loss. Despite this miss, Cantor Fitzgerald raised its price target for USA Rare Earth from $16.00 to $20.00, maintaining an Overweight rating. The price target increase was attributed to the company’s impressive performance, as noted by Cantor Fitzgerald. Additionally, USA Rare Earth signed a memorandum of understanding with Enduro Pipeline Services for the supply of neo magnets, with production expected to start in early 2026. These magnets will be used in Enduro’s advanced pipeline cleaning tools. The agreement is set to enhance USA Rare Earth’s position in the market for U.S.-made neo magnets. These developments come as USA Rare Earth continues to expand its strategic partnerships and strengthen its market presence.

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