Analyst George Gianarikas of Canaccord Genuity maintained a Buy rating on MP Materials (MP – Research Report), boosting the price target to $27.00.
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George Gianarikas has given his Buy rating due to a combination of factors that highlight MP Materials’ strategic positioning in the global market. As geopolitical dynamics shift, MP Materials is seen to be strengthening its prospects, especially in light of the recent US-China trade developments. Despite improved access to Chinese rare earth magnets, the analyst believes that the U.S. will continue its efforts to establish an independent supply chain, which bodes well for MP Materials.
Furthermore, the recent collaboration between MP Materials and Ma’aden, a Saudi Arabian mining company, is a significant strategic move. This partnership aims to explore the creation of a fully integrated rare earth supply chain in Saudi Arabia, enhancing MP’s strategic value and potential global partnerships. This collaboration not only reinforces MP’s national importance but also opens up possibilities for Saudi Arabia to become a key supplier of heavy rare earth elements, challenging China’s current dominance. These factors collectively support the Buy rating and the $27 price target.
In another report released on May 12, D.A. Davidson also maintained a Buy rating on the stock with a $32.00 price target.
MP’s price has also changed moderately for the past six months – from $18.570 to $21.080, which is a 13.52% increase.