USA Rare Earth, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Subash Chandra from Benchmark Co. maintained a Buy rating on the stock and has a $15.00 price target.
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Subash Chandra has given his Buy rating due to a combination of factors that indicate strong potential for USA Rare Earth. The company is on track with its production timeline, expecting to start shipping in 6-8 months and aiming to have sintered blocks ready by the end of the year. This progress in their manufacturing process, particularly in the jet milling and pressing sequences, is crucial for ensuring the quality of their magnets.
Furthermore, USA Rare Earth has a robust order book with 12 signed agreements and a pipeline of 5,000 to 7,000 tons, indicating strong demand. The company’s focus on non-automotive sectors, which are less consolidated, presents an opportunity for higher margins. Additionally, their strategy includes partnerships to secure raw materials, enhancing their supply chain resilience. These factors collectively support the Buy rating, as they suggest a promising growth trajectory for the company.
In another report released on August 27, Roth MKM also maintained a Buy rating on the stock with a $20.00 price target.