Strategic Positioning and Long-term Demand Drive Buy Rating for MP Materials Amid Global Trade Shifts

Analyst Carlos De Alba from Morgan Stanley maintained a Buy rating on MP Materials (MP – Research Report) and keeping the price target at $34.00.

Carlos De Alba has given his Buy rating due to a combination of factors, primarily focusing on the strategic positioning of MP Materials in the context of global trade dynamics. The recent export restrictions imposed by China on heavy rare earths and permanent magnets have created a favorable environment for MP Materials, as it is the only integrated permanent magnet producer in the United States. This situation is expected to increase demand and pricing for rare earth elements outside of China, underscoring the company’s strategic importance.
Furthermore, Carlos De Alba highlights the long-term demand prospects driven by the rise of humanoid technologies, which have national security implications and are likely to boost demand for rare earth elements and permanent magnets. Despite near-term challenges, such as the halt in concentrate sales to China, MP Materials is well-positioned financially to navigate these headwinds. The company’s strong balance sheet and focus on ramping up its separated rare earth products and magnet production are expected to yield positive EBITDA results by the end of 2025, supporting the Buy rating.

In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $38.00 price target.