Strategic Advancements and Favorable Policies Propel USA Rare Earth’s Growth Potential

Subash Chandra, an analyst from Benchmark Co., maintained the Buy rating on USA Rare Earth (USAR – Research Report). The associated price target remains the same with $15.00.

Subash Chandra’s rating is based on several strategic developments and favorable market conditions for USA Rare Earth. The company is poised to benefit from recent policy changes, including an Executive Order promoting the rare earth industry in the United States, which aligns with China’s export restrictions on rare earths and permanent magnets. This creates a promising environment for USAR as they position themselves as one of the few publicly-traded rare earth-magnet manufacturers in the country.
Additionally, USAR has made significant progress by commissioning an Innovation Lab that will serve as both a demonstration site and a sales office. The company is on track to achieve key milestones, such as securing letters of intent with magnet customers across various industries and commissioning essential equipment for their manufacturing plant. While tariffs may slightly increase costs, they are not expected to significantly impact the company’s timeline. Furthermore, USAR’s efforts to secure raw materials and develop domestic sources of heavy rare earths could mitigate supply chain risks, especially given China’s dominance in this area.