Bank of America Securities analyst Lawson Winder has reiterated their bullish stance on MP stock, giving a Buy rating yesterday.
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Lawson Winder’s rating is based on MP Materials’ strong performance and strategic positioning. The company reported a smaller-than-expected adjusted EBITDA loss for Q4’24, driven by higher sales and better pricing, outperforming consensus expectations. Additionally, MP Materials has shown promising progress with increased production and strategic advancements such as the commercial production of NdPr metals and trial production of NdFeB magnets, which are crucial for establishing a fully integrated supply chain in the U.S.
Furthermore, the decision to raise the price objective from $22 to $26 reflects a more optimistic view of MP Materials’ future, based on reduced execution risks and high return potential in magnetics. The increased price target also considers the rising strategic value of MP’s unique U.S. asset base amid global trade tensions. These factors, combined with the company’s projected improvements in midstream profitability and the outlook for positive EBITDA in the magnetics segment, support the reaffirmation of a Buy rating.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $25.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MP in relation to earlier this year.