USA Rare Earth stock price target raised to $20 by Cantor Fitzgerald

Published 12/08/2025, 15:14
USA Rare Earth stock price target raised to $20 by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on USA Rare Earth Inc (NASDAQ:USAR) to $20.00 from $16.00 on Tuesday, while maintaining an Overweight rating on the stock. The company’s shares have already shown strong momentum, gaining over 9% in the past week and trading near their 52-week high of $20.00. According to InvestingPro data, the stock currently trades at $19.29.

The price target increase follows USA Rare Earth’s second-quarter 2025 results, which Cantor Fitzgerald described as impressive and reinforcing their investment thesis on the company. InvestingPro analysis shows the company maintains a "GOOD" financial health score, with liquid assets significantly exceeding short-term obligations (current ratio: 3.52).

USA Rare Earth disclosed an approximately 300-ton annual demand pipeline for the first time, which Cantor Fitzgerald interpreted as a signal of strong domestic demand for rare earth materials.

The research firm highlighted USA Rare Earth’s strong balance sheet, noting the company could potentially exit 2026 with more than $350 million in cash, providing options to accelerate its scale-up efforts.

Cantor Fitzgerald cited three key factors supporting its positive outlook: an approximately $20 billion addressable market, the company’s focus on high-value "heavy" rare earths, and the potential for government funding.

In other recent news, USA Rare Earth, Inc. reported its Q2 2025 earnings, which revealed a larger-than-expected loss per share. The company posted an adjusted net loss of $0.08 per share, missing the forecasted loss of $0.06 per share by 33.33%. Additionally, USA Rare Earth announced a memorandum of understanding with Enduro Pipeline Services for the delivery of U.S.-made neo magnets. Under this agreement, USA Rare Earth will supply neodymium magnets for Enduro’s advanced pipeline cleaning tools, with production slated to begin in early 2026. This collaboration aims to enhance the capabilities of Enduro’s "intelligent pigs," which are used for pipeline cleaning and inspection. Despite missing earnings estimates, the announcement of the MOU with Enduro marks a significant development for USA Rare Earth.

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