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Investing.com -- Goldman Sachs has initiated coverage of MP Materials with a Buy rating, arguing that the company’s position in the domestic rare earths supply chain and its deepening vertical integration leave it well placed for substantial long-term growth.
The bank set a 12-month price target of $77, which “implies ~32% upside from current levels,” according to analyst Brian Lee.
Goldman Sachs said MP is “the largest rare earth producer in the Western Hemisphere (per GSe),” with production centred on neodymium-praseodymium oxide, or NdPr.
The material is a key input for permanent NdFeB magnets used in electronics, electric vehicles and defence, making it strategically important to U.S. manufacturing priorities.
The note emphasised MP’s efforts to expand downstream into refining and magnet production, a shift that Goldman Sachs said has been “accelerated by a partnership with the US government.”
The bank argued that this positions the company as a crucial part of a domestic supply chain for materials where China maintains overwhelming dominance. China-based refiners control “90-95% (per EIA, as of 2024)” of global rare earth refining and magnet production.
Lee expects these strategic moves to drive major financial gains. The analyst wrote that Goldman anticipates “significant revenue and EBITDA growth, while vertical integration unlocks margin upside” as MP transitions from raw materials production to full magnet manufacturing.