Shares of rare earth mining firm MP Materials (MP) surged on Monday after five-star Wedbush analyst Dan Ives, along with analyst Sam Brandeis, started coverage with a Buy rating and a $90 price target. The investment firm pointed to MP’s Mountain Pass mine in California as a key reason due to the fact that it is one of only four mines that supply about 80% of the world’s rare earth materials. Even more importantly, it is the only one located in the United States. Because of this, analysts described the asset as “nearly irreplaceable,” especially as demand for these materials continues to increase.
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In fact, as tensions with China rise, the U.S. is placing greater focus on building its own rare-earth supply chain. This matters because China controls about 60% of mining and around 90% of processing and magnet production. As a result, Wedbush sees MP Materials as a key company in this shift, even calling it “America’s designated rare earth national champion.” In addition, the firm highlighted MP’s vertical integration strategy, which helps lower costs and improve product quality.
Wedbush also believes that MP has a strong and relatively low-risk growth path. The company already has major partners like Apple (AAPL) and the U.S. Department of Defense, which supports future demand. On top of that, its new facility in Texas is expected to start operating in 2028, adding another growth driver. Because of this mix of contracts, government support, and future expansion, analysts see clear upside ahead.
Is MP Stock a Good Buy?
Overall, analysts have a Strong Buy consensus rating on MP stock based on nine Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average MP price target of $76.50 per share implies 16.5% upside potential.
