Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - Canaccord Genuity has raised its price target on USA Rare Earth Inc (NASDAQ:USAR) to $21.00 from $17.00 while maintaining a Buy rating on the stock. The company, currently trading at $18.13 with a market capitalization of $1.61 billion, has shown strong momentum with a 13% gain over the past week.
The firm cited changes to its financial model, including increased magnet price assumptions, as the primary reason for the higher valuation.
Canaccord’s discounted cash flow analysis assumes approximately 14% weighted average cost of capital and roughly 6% terminal growth, reflecting healthy growth potential beyond 2035.
The growth projections are based on expectations that USA Rare Earth will successfully manufacture magnets from its first four production lines and develop its Round Top mine.
Canaccord acknowledged material risks to the company’s magnetics business operations, including challenges in magnet production, customer acquisition, and feedstock procurement, as well as separate risks associated with potential mining and processing operations at Round Top.
In other recent news, USA Rare Earth Inc. reported its second-quarter 2025 earnings, posting an adjusted net loss of $0.08 per share, which was larger than the anticipated loss of $0.06 per share. Despite this earnings miss, the company has seen positive developments. Cantor Fitzgerald raised its price target for USA Rare Earth to $20.00 from $16.00, maintaining an Overweight rating, citing impressive second-quarter results that reinforced their investment thesis. Additionally, USA Rare Earth signed a memorandum of understanding with Enduro Pipeline Services to supply neo magnets for pipeline cleaning tools, with production slated to begin in early 2026. This agreement involves supplying high-powered neodymium magnets for Enduro’s "intelligent pigs," which are advanced inspection tools. Benchmark maintained its Buy rating and set a $15.00 price target, highlighting strong customer interest and better-than-expected magnet sales forecasts for 2026. These developments indicate a robust outlook for USA Rare Earth, according to analysts.
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