Analyst Carlos De Alba of Morgan Stanley maintained a Hold rating on MP Materials (MP – Research Report), retaining the price target of $23.00.
Carlos De Alba has given his Hold rating due to a combination of factors surrounding the current geopolitical and market dynamics. The recent export controls imposed by China on medium and heavy rare earths, coupled with reciprocal tariffs on the US, have created a complex environment for companies like MP Materials, which primarily focuses on light rare earths.
While these developments could potentially benefit MP Materials by increasing the value of its domestic supply chain, the company’s limited exposure to heavy rare earths means it remains somewhat reliant on external factors. Additionally, the ongoing efforts by MP Materials to ramp up its domestic rare earth separation and magnet production facilities could position it favorably in the long term. However, the current uncertainties in the global rare earth market and the company’s specific resource mix contribute to the cautious Hold rating.