In a report released yesterday, Carlos De Alba from Morgan Stanley maintained a Buy rating on MP Materials, with a price target of $34.00.
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Carlos De Alba has given his Buy rating due to a combination of factors including a significant investment from the Department of Defense (DoD) in MP Materials. This investment includes a price floor commitment for NdPr, which is expected to enhance the company’s earnings potential and provide greater clarity on profitability. The commitment from the DoD also involves the construction of a new magnet facility, which will significantly expand MP Materials’ production capacity.
Additionally, the DoD’s investment through convertible preferred equity and warrants positions it as a major shareholder, further solidifying the strategic partnership. This development underscores the strategic value of MP Materials’ assets, as they are a leading rare earth elements supplier in the U.S. The guaranteed pricing model and the expected increase in EBITDA highlight the company’s strengthened financial outlook, supporting the Buy rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $55.00 price target.