Bank of America Securities analyst Lawson Winder has reiterated their bullish stance on MP stock, giving a Buy rating on October 13.
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Lawson Winder has given his Buy rating due to a combination of factors that highlight MP Materials’ strategic position in the rare earths market. The recent tightening of export controls by China on rare earths underscores the importance for Western countries to secure their supply chains outside of China. This situation positions MP Materials as a key player in meeting the growing demand for rare earth magnets, particularly in the U.S. and EU, which are projected to see significant growth in demand by 2035.
Furthermore, Winder has updated his financial model to reflect increased earnings potential from MP Materials’ operations, including processing recycled rare earth feedstock and producing separated heavy rare earth oxides. He anticipates a path to nearly $1 billion in EBITDA by 2029, which supports a higher price objective of $112 per share. This increase is based on a higher valuation multiple that accounts for MP Materials’ strategic importance, reduced execution risks, and potential for expansion, aligning more closely with the company’s historical averages.
Winder covers the Basic Materials sector, focusing on stocks such as Barrick Mining, Freeport-McMoRan, and Newmont Mining. According to TipRanks, Winder has an average return of 19.8% and a 58.29% success rate on recommended stocks.
In another report released on October 13, Daiwa also reiterated a Buy rating on the stock with a $78.34 price target.