USA Rare Earth Inc.'s stock surged 5.20% during Tuesday's intraday trading session following significant positive developments for the company.
The price movement comes after USA Rare Earth announced a nonbinding letter of intent with the U.S. Commerce Department for approximately $1.6 billion in financing, along with raising an additional $1.5 billion in equity. This substantial government support is part of broader efforts to reduce American dependence on Chinese raw materials in the rare earth sector.
Wall Street analysts responded positively to the news, with Benchmark tripling its price target to $45 from $15 while maintaining a Buy rating, and Canaccord Genuity raising its target to $33 from $23. Multiple analysts maintained their Buy ratings on the stock, citing the company's transformation into a comprehensive mine-to-magnet operation that plans to significantly increase production capacity by 2030.
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