USA Rare Earth Positioned for Growth Amid White House Executive Order and Strategic Advancements

Analyst Subash Chandra of Benchmark Co. maintained a Buy rating on USA Rare Earth (USAR – Research Report), retaining the price target of $15.00.

Subash Chandra has given his Buy rating due to a combination of factors influencing USA Rare Earth’s potential growth. The recent executive order from the White House prioritizes the development of rare earths within the United States, which indirectly benefits USAR’s Round Top project in Texas. Although the project is on state land and not directly impacted by the order, the anticipated increase in capital flows is expected to positively affect the company.
Additionally, the completion of a business combination with IPXX positions USA Rare Earth for significant advancements. The company is gearing up for commercial production of rare-earth magnets by 2026, with the establishment of a sales office and the ordering of equipment for the first production line. This strategic move is expected to generate substantial revenue, with plans to expand capacity over the coming years. The executive order’s aim to create a domestic supply chain aligns well with USAR’s objectives, enhancing its prospects in a market currently dominated by foreign entities.