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MP Materials Shares Surge
MP Materials (NYSE: MP) shares increased by 12.3% in the week leading up to Friday morning. This rise follows a target upgrade from a BMO analyst, who changed the rating from “hold” to “buy” with a new price target of $75.
Strategic Partnerships
The upgrade is attributed to a recently announced joint venture with the Department of Defense (DoD) and the Saudi Arabian Mining Company (Maaden). Under this agreement, MP Materials will hold a 49% stake in a rare-earth refinery projected to enhance the company’s long-term fundamentals. Additionally, in July, MP Materials secured a $400 million investment from the DoD and a $500 million partnership with Apple for rare-earth magnets.
Market Context
While forecast accuracy is challenging due to political and market fluctuations, particularly regarding competition with China, MP Materials’ position in the rare-earth sector is expected to strengthen amidst ongoing trade conflicts.
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