David Deckelbaum, an analyst from TD Cowen, maintained the Buy rating on MP Materials. The associated price target remains the same with $80.00.
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David Deckelbaum has given his Buy rating due to a combination of factors, primarily focusing on the financial outlook and operational growth of MP Materials. The company is expected to achieve approximately $376 million in adjusted EBITDA by the fiscal year 2026, driven by the increase in commercial magnet sales and PPA payments.
Additionally, MP Materials is projected to ramp up its rare earth oxide (REO) volumes year-over-year to around 59 kilotons and reach its nameplate capacity at Stage II by the second half of 2026, with an estimated production of 5.5 kilotons next year. The forecasted capital expenditure for fiscal year 2026 is $350 million, with the company anticipated to end the year with $2 billion in cash and short-term investments. These factors collectively contribute to a positive outlook for MP Materials, justifying the Buy rating.
In another report released yesterday, Deutsche Bank also upgraded the stock to a Buy with a $71.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MP in relation to earlier this year.