Investment Banks Keep Raising Their Price Target on This Rare-Earth Mining Stock. Time to Buy?

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Courtney Carlsen, The Motley Fool

Sun, June 7, 2026 astatine 12:57 PM CDT 4 min read

The U.S. is making a beardown propulsion to unafraid home rare-earth mining and processing. This determination is chiefly fueled by the information that China presently dominates the planetary market, controlling a staggering 70% of mining and 90% of processing, giving the state sizeable power successful planetary negotiations.

The U.S. entered into a historical statement with MP Materials (NYSE: MP) past year, investing successful the institution to assistance it ramp up its processing capableness portion besides providing it with terms floors for its captious magnets. Over the past month, respective concern banks person raised their terms targets connected the company. Here's what investors request to know.

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MP Materials' caller net results impressed Wall Street

MP Materials is the lone afloat integrated Western rare-earth shaper that besides owns the largest rare-earth excavation successful the U.S. astatine Mountain Pass. Last year, the institution entered into a landmark public-private concern with the U.S. authorities to acquisition its neodymium-praseodymium (NdPr) products, which are utilized successful captious rare-earth magnets for electrical vehicles, robotics, and defense.

As portion of this agreement, the U.S. established a terms level of $110 per kilogram for MP's NdPr products that are stockpiled oregon sold. This terms level is antithetic but is seen arsenic necessary, fixed that China heavy subsidizes authorities accumulation of rare-earth elements. By instituting a terms floor, the U.S. is locking successful a terms astatine which it volition bargain MP's products, preventing the institution from being undercut by overseas competitors.

A manus holds up a colorful stone meant to correspond rare-earth elements against the backdrop of a cloudy sky.

MP Materials' first-quarter net results caught the attraction of Wall Street, and for bully reason. In the quarter, the institution earned $90 cardinal successful revenue, smashing analysts' forecast of $70 million. Meanwhile, its adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) roseate from antagonistic $2.7 cardinal past twelvemonth to affirmative $36.6 million. Following its announcement, respective concern banks raised their terms targets:

Goldman Sachs to $80 from $71
Morgan Stanley to $70 from $62
Deutsche Bank to $70 from $65
Wedbush to $100 from $90

Analysts are opening to presumption MP Materials little similar a axenic mining communicative and much arsenic an integrated manufacturing platform. In the quarter, MP announced that NdPr accumulation measurement accrued 63% twelvemonth implicit year, portion income surged 117%.

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