Morgan Stanley analyst Carlos De Alba has maintained their neutral stance on MP stock, giving a Hold rating on May 1.
Carlos De Alba has given his Hold rating due to a combination of factors influencing MP Materials’ recent performance. The company’s first-quarter results showed mixed outcomes, with revenues aligning closely with consensus expectations but falling short of Morgan Stanley’s estimates. While the adjusted EBITDA and EPS surpassed consensus forecasts, they did not meet the firm’s projections, indicating some underlying challenges.
Despite these mixed financial results, the company is making progress in its magnetics division, which achieved its first metal delivery and generated positive EBITDA. However, the elevated production costs due to low utilization of refining facilities and increased SG&A expenses due to a growing workforce present potential headwinds. These factors, combined with the company’s ongoing efforts to ramp up production and reach commercial magnet production by year-end, contribute to the Hold rating, suggesting a cautious approach as the company navigates these developments.
In another report released on May 1, J.P. Morgan also maintained a Hold rating on the stock with a $21.00 price target.