USA Rare Earth (USAR) reported Q1 results featuring ongoing strategic momentum across the mine-to-magnet platform, with LCM third-party metal and alloy contribution driving results, Wedbush Securities said Wednesday in a note.
Total liquidity of approximately $1.75 billion gives the company sufficient runway to fund Stillwater, LCM, Carester, Round Top, and Serra Verde without financing pressure, according to the note.
Stillwater Phase 1a is now producing magnets for customer qualification with finishing equipment operational at the start of Q3, increasing to 600 metric tons per annum in Q4 and the 1,200 MTPA Phase 1b target in Q1 2027, with near-term demand skewed to semi-finished block magnets for safety stocks, the brokerage said.
With Phase 1a capacity already committed to current customers and Phase 1b expected to add another 600 MTPA in early 2027, USA Rare Earth is well-positioned to benefit from rising volumes and pricing tailwinds, particularly as Serra Verde adds the biggest ionic clay HREE producer outside China to its upstream supply portfolio, according to the note.
Wedbush maintained an outperform rating on USA Rare Earth with a price target of $35.
Shares of the company were down more than 3% in Thursday trading.
Price: 24.04, Change: -1.38, Percent Change: -5.42
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