Morgan Stanley analyst Carlos De Alba maintained a Hold rating on MP Materials today and set a price target of $65.00.
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Carlos De Alba has given his Hold rating due to a combination of factors that reflect both opportunities and risks associated with MP Materials. The company is developing a fully domestic supply chain for rare earth materials, which is a significant strategic advantage, especially with its partnership with the Department of Defense. This collaboration has reduced some of the business risks, and the company is on track to start commercial production of critical components by the end of 2025.
However, despite these positive developments, there are concerns about project execution, which remains a significant risk. While MP Materials has been meeting its operational targets and maintains a strong financial position, the forecasted negative EBITDA and EPS in the near term suggest challenges ahead. The valuation methodology, which incorporates a discounted cash flow analysis with varying growth rates and weighted average cost of capital, also indicates a balanced outlook, justifying the Hold rating.
In another report released on August 26, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $71.00 price target.