William Blair initiates coverage of USA Rare Earth at "outperform"

Published 20/10/2025, 12:50
© Reuters

Investing.com - The U.S. government could announce a sizable investment in USA Rare Earth Inc., after the company highlighted recent "positive discussions" with the White House, analysts at William Blair said in a note to clients.

The analysts including Neal Dingmann and Bert Donnes added that USA Rare Earth extracts minerals viewed as a crucial to a host of industries and has made acquisitions boosting its metal-making operations.

Along with the development of a mine in Texas, USA Rare Earth anticipates that a neo magnet manufacturing site in Oklahoma should start production in the first half of next year.

"We expect the combination of these factors to generate long-term shareholder return," the analysts said in a note initiating their coverage of the stock at "outperform."

Shares of USA Rare Earth have more than doubled so far this year to touch all-time highs, with much of the gains coming in recent weeks. Ahead of the market open on Monday, the company’s market value stood at $3.16 billion.

One factor underpinning the advance has been a report that suggested CEO Barbara Humpton was in close discussions with the administration of President Donald Trump. Humpton was responding to a query about USA Rare Earth’s potential interest in forging a deal with the White House, which has targeted an uptick in the domestic production of critical minerals as part of a bid to offset China’s dominance in the sector.

Rare earths are a group of 17 metals, which, after being mined, are turned into magnets that have the potential to power motion. These materials are key components in a range of industries, from auto manufacturing and smartphones to the defense sector.

China has moved to expand its controls over rare earth exports, fueling a jump in shares across the segment. But the wider bans have sparked a fresh round of a trade fight between the U.S. and China, with Trump threatening to slap triple-digit tariffs on China in retaliation -- although both sides have seemingly attempted to ease the latest tensions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.