MP Materials price target lowered to $22 from $26 at TD Cowen

TD Cowen lowered the firm’s price target on MP Materials to $22 from $26 and keeps an Outperform rating on the shares. With spot lithium pricing down 80% from one year ago, the firm expects further estimate and guidance revisions and as a result, lowered its pricing forecasts as it continues to await customer restocking. Citing continued weak pricing and a more challenged risk/reward environment over the next twelve months, TD downgraded names where it anticipates “inordinate growth capex cuts, increased balance sheet stress, and cash burn.” The firm says Q4 reports should prove to be a pivotal point for the lithium space as incumbent producers face pathways of lower production to bolster prices and developers look to push out timelines to maintain balance sheets.