Wedbush praises MP Materials (MP.US) as "America's rare earth national champion"! Stock price expected to rise by 36%.

Investment bank Wedbush initiates coverage on US rare earth giant MP Materials (MP.US) with an "outperform" rating and a target price of $90, representing nearly a 36% upside from the stock's closing price of $66.23 on Monday. The firm points out that MP Materials' assets in the Mountain Pass mining district in California are one of only four mines globally that supply about 80% of rare earth production, and the only one in the US, making it "almost irreplaceable." Wedbush analysts Dan Ives and Sam Brandeis state that the independence of the rare earth supply chain has emerged as a top priority on the US national security agenda, with MP Materials now being recognized as the "designated rare earth national champion" of the US. They suggest that vertical integration is the most underestimated aspect of the MP Materials story, with synergies between the Mountain Pass mine and the Independence facility creating bi-directional cost and quality advantages. With commercial orders from Apple Inc., General Motors Company, and the US Department of Defense, along with plans for the 10X facility in Texas to start production in 2028, the analysts believe that MP Materials' opportunities have "unique risk mitigation characteristics, where contract demand, sovereign customers, and a defined production catalyst will converge in the coming years." Additionally, Wedbush also initiates coverage on rare earth company USA Rare Earth (USAR.US) with an "outperform" rating and a target price of $29, representing nearly a 28% upside from the stock's closing price of $22.58 on Monday. USA Rare Earth announced on Monday a cash and stock acquisition of the Brazil-based Serra Verde group, one of the largest transactions in the history of the rare earth industry. The Serra Verde group owns a large rare earth mine in Brazil, which the CEO of USA Rare Earth describes as a "unique asset and the only producer outside of Asia capable of supplying all four magnetic rare earths on a large scale."