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Baird says MP, Apple agreement positive for magnet demand

Baird analyst Ben Kallo says MP Materials’ (MP) $500M agreement with Apple (AAPL) is an example of the next catalysts for the company following the recently announced Department of Defense partnership. Apple is the foundational customer for MP’s recycling business, “which will become a bigger topic,” the analyst tells investors in a research note. Baird says the Apple commercial agreement came much quicker than it anticipated. This is a positive for both magnet demand and selling out the remaining magnet capacity, the firm contends. It has an Outperform rating on MP Materials with a $52 price target. The stock in morning trading is up 18% to $57.19.

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