Wedbush Hails MP Materials (MP.US) as "America's Rare Earth National Champion," Sees 36% Upside

Investment bank Wedbush has initiated coverage on US rare earths giant MP Materials (MP.US) with an "Outperform" rating and a $90 price target. This target implies a potential gain of nearly 36% from the stock's closing price of $66.23 on Monday. The firm highlighted that MP Materials' Mountain Pass mine assets in California are one of only four mines globally supplying approximately 80% of rare earth production and the sole such operation within the United States, making it "nearly irreplaceable." Wedbush analysts Dan Ives and Sam Brandeis stated that supply chain independence for rare earths has become a priority on the US national security agenda, with MP Materials now designated as "America's rare earth national champion." The analysts noted that vertical integration is the "most underappreciated dimension of the MP Materials story," with synergies between the Mountain Pass mine and the Independence processing facility creating cost and quality advantages through a two-way flow. They added that with Apple, General Motors, and the US Department of Defense forming the backbone of its commercial order pipeline, and the planned 10X plant in Round Rock, Texas, expected to commence operations in 2028, MP Materials' opportunity possesses "unique risk-mitigating characteristics, with contract demand, sovereign customers, and defined production catalysts all converging over the coming years." Separately, Wedbush also initiated coverage on rare earths company USA Rare Earth (USAR.US) with an "Outperform" rating and a $29 price target, suggesting nearly 28% upside from Monday's close of $22.58. USA Rare Earth announced on Monday its acquisition of Brazil's Serra Verde Group through a combination of cash and stock, marking one of the largest transactions in the history of the rare earths industry. Serra Verde Group holds a large rare earths deposit in Brazil, which USA Rare Earth's CEO described as a "one-of-a-kind asset and the only producer outside of Asia capable of supplying all four magnetic rare earths at scale."