Laurence Alexander, an analyst from Jefferies, maintained the Buy rating on MP Materials (MP – Research Report). The associated price target was raised to $32.00.
Laurence Alexander has given his Buy rating due to a combination of factors influencing MP Materials’ strategic positioning and future growth prospects. The company is transitioning away from exporting rare earth concentrates to China, which previously accounted for a significant portion of their sales. This shift is driven by Chinese tariffs that have made such exports economically unviable. Instead, MP Materials is focusing on building inventory and expanding its midstream and downstream production capabilities to serve new markets outside of China.
Additionally, the company is experiencing increased interest from manufacturers, particularly in the automotive sector, for its materials and magnets. This interest is expected to support the ramp-up of NdFeB magnet production, which remains on schedule despite China’s export controls. Laurence Alexander anticipates that government policies stimulating demand could further enhance MP Materials’ market position. The potential for new OEM agreements and investments in magnet capacity could lead to significant EBITDA growth, especially if a cyclical recovery aligns with rising demand in the electric vehicle and robotics sectors.
According to TipRanks, Alexander is an analyst with an average return of -3.5% and a 43.18% success rate. Alexander covers the Basic Materials sector, focusing on stocks such as Ecolab, FMC, and Linde.
In another report released on April 4, Canaccord Genuity also maintained a Buy rating on the stock with a $26.00 price target.