Possessing fundamental value and long-term investment themes! Deutsche Bank upgrades rating of MP Materials (MP.US) to "buy"

Deutsche Bank Aktiengesellschaft has upgraded its stock rating on the US rare earth giant MP Materials (MP.US) from "neutral" to "buy," and raised its target price from $68 to $71. Deutsche Bank believes that the company currently offers buying opportunities for investors seeking to position themselves in the critical minerals and rare earth themes in the medium to long term. Deutsche Bank analyst Corinne Blanchard stated that MP Materials has a clear path for future growth, with the US government setting a floor price of $110 per kilogram for rare earths, providing strong price support. She also mentioned that the company is strategically positioned in the industry through expansion in heavy rare earth refining, magnet production, and recycling businesses. The analyst pointed out that there is still room for further upward performance in the coming quarters for MP Materials, depending on the progress of the refining plant project and whether the development plan for the Mountain Pass mine in California can be further optimized. However, she believes that these potential positives are more likely to gradually materialize in the medium to long term. In last week's financial report, MP Materials disclosed details of agreements signed with the US Department of Defense and the rare earth floor price mechanism. The analyst noted that these factors have not been widely incorporated into market expectations, with most investors not fully considering this policy support. Based on her discussions with the company's management, she believes that the current inventory and stock will benefit from the floor price guarantee of $110 per kilogram once converted into sales. The analyst wrote, "In recent years, MP Materials has proven its excellent execution capabilitiesfrom mine restarts, to second phase capacity expansion, to magnet production. We remain confident in MP Materials' future development path." She also pointed out that the execution performance in the coming quarters will remain a key point of concern for investors, and that the stock price may face some downward pressure in the short term, but she expects this pullback to be temporary.