U.S.-based MP Materials (MP) is back in the investor spotlight after Apple (AAPL) announced a blockbuster deal to invest $500 million in the rare earth firm to strengthen the tech giant’s U.S. supply chain. The news sent MP stock soaring nearly 20% on Tuesday, pushing it to a new all-time high. Beyond the excitement of the Apple deal, investors are now questioning whether the rally in MP Materials stock can continue.
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Notably, MP Materials owns the only rare earth mine in the U.S., located at Mountain Pass, California, and runs a magnet production facility in Fort Worth, Texas. The company’s new venture into recycling may unlock fresh growth potential for investors. Overall, Wall Street analysts have praised MP Materials’ recent deal with Apple and remain strongly bullish on the stock. However, given the sharp rally in MP shares this year, they see limited upside in the near term. Year-to-date, MP stock has soared more than 270%.
What’s Happening with MP Stock?
MP Materials stock has surged this year, driven by rising demand for rare earths and strong backing from President Trump’s push to boost domestic production and cut U.S. dependence on China. Adding to the momentum, the U.S. Department of Defense recently agreed to take a direct equity stake in MP Materials, making it the company’s largest shareholder.
Under the latest deal, Apple will purchase rare earth magnets made at MP Materials’ plant in Texas. The two companies will also build a new recycling facility in California. MP plans to begin shipping the magnets in 2027. For context, rare earth magnets are used in smartphones, electric vehicles, wind turbines, and defense systems.
Wall Street Applauds MP-Apple Deal
TD Cowen stated that MP’s deal with Apple is a strong example of future growth potential. The firm noted that the deal uses up most of the production capacity at MP’s Texas facility. As the company starts recycling rare earth magnets, it will benefit from securing more heavy rare earth elements, which are essential for making powerful magnets. TD Cowen maintains a Buy rating on MP stock with a $55 price target.
Likewise, Baird analyst Ben Kallo calls the deal a major new catalyst for MP, following its recent partnership with the U.S. Department of Defense. He notes that Apple will be the first big customer for MP’s recycling business, which could grow in importance. The deal happened sooner than expected and is a positive sign for strong magnet demand and full use of MP’s production capacity.
Is MP Materials a Good Stock to Buy?
According to TipRanks, MP stock has received a Strong Buy consensus rating, with six Buys and two Holds assigned in the last three months. The average MP Materials stock price target is $43.17, suggesting a potential downside of 26% from the current level.
