Morgan Stanley analyst Carlos De Alba reiterated 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 impact MP Materials’ future prospects. The company’s recent partnership with the U.S. Department of Defense (DoD) significantly reduces risks associated with funding, commodity pricing, and commercial uncertainties. This partnership includes a price floor on NdPr production and a substantial investment in MP’s preferred stock, which provides a stable financial foundation for the company.
Additionally, MP Materials has secured a commercial agreement with Apple to supply recycled permanent magnets, which enhances its market position and reduces marketing risks. Despite these positive developments, the focus now shifts to the execution of these projects, which poses a significant risk. Therefore, while the company’s long-term outlook appears promising, the execution risks justify a Hold rating at this time.
In another report released on July 21, J.P. Morgan also maintained a Hold rating on the stock with a $64.00 price target.