Protectionist policies strengthen case for MP’s domestic production, says Baird

Baird analyst Ben Kallo notes that the firm has received several questions related to MP Materials and the export controls being put in place by China in August. The firm notes that there is confusion surrounding headlines describing gallium and germanium improperly as rare earth elements by some sources, which it sees as “partially responsible for the stock move,” but it adds that it views the continuing of protectionist policies by the U.S., China and other nations as “strengthening the case for MP’s domestic production” of neodymium and praseodymium, or NdPr. Baird has an Outperform rating and $28 price target on MP Materials shares.