Analyst Bill Peterson of J.P. Morgan maintained a Hold rating on MP Materials, boosting the price target to $64.00.
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Bill Peterson has given his Hold rating due to a combination of factors that influence MP Materials’ current market position. The company has seen a significant rise in its stock price following a landmark agreement with the Department of Defense and a strategic partnership with Apple. These developments have enhanced MP’s visibility and justified a premium valuation multiple compared to its peers. However, despite these positive factors, Peterson notes that the profitability of MP Materials is expected to be capped in the near term due to stable NdPr pricing and limited immediate benefits from the Apple partnership.
While the company is well-positioned with strong earnings visibility and limited downside risk, the potential for further upside is somewhat constrained. Peterson anticipates that additional offtake agreements could drive future growth, but rising operational costs and capped profitability limit the immediate potential for stock price appreciation. As a result, the current risk/reward balance is considered to be adequately reflected in the stock’s price, leading to a Hold rating.
In another report released on July 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $68.00 price target.