Wedbush bullish on USA Rare Earth, initiates with an Outperform

As previously reported, Wedbush initiated coverage of USA Rare Earth (USAR) with an Outperform rating and $29 price target The firm notes USA Rare Earth is building a fully integrated heavy rare earth mine-to-magnet platform spanning the Round Top deposit in West Texas, the largest Heavy Rare Earth Element-dominant deposit in North America, a commercial-scale samarium cobalt and heavy rare earth metal producer outside China, and a commissioned magnet manufacturing facility in Stillwater, Oklahoma with first commercial NdFeB shipments beginning this quarter. With China’s export controls having made the cost of supply chain dependence impossible to ignore, the window for domestic producers to capture long-term customer relationships across every segment of the rare earth value chain has never been more urgent, Wedbush argues.

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