Strategic Positioning and Operational Improvements Drive Buy Rating for MP Materials Amid US-China Trade Tensions

TD Cowen analyst David Deckelbaum has maintained their bullish stance on MP stock, giving a Buy rating on April 21.

David Deckelbaum has given his Buy rating due to a combination of factors that highlight MP Materials’ strategic positioning and operational improvements. The company’s first-quarter performance exceeded expectations with higher-than-estimated NdPr volumes and a positive segment EBITDA, indicating a favorable cost trend and progress towards commercial magnet production by the end of 2025. The ongoing US-China trade tensions present strategic opportunities for MP Materials, as they have been stockpiling concentrate instead of selling to China, which could enhance their market position.
Furthermore, MP Materials is actively working to expand its NdPr separation capabilities and plans to add heavy rare earth element separation by 2026. The company’s capital expenditures were lower than anticipated, yet they maintained their full-year guidance, reflecting prudent financial management. Additionally, MP Materials is focusing on reducing costs, with expectations of significant cost savings at their target production run-rate, which further supports the positive outlook for the company’s growth and profitability.

In another report released on April 21, Jefferies also maintained a Buy rating on the stock with a $32.00 price target.