Investment Banks Keep Raising Their Price Target on This Rare-Earth Mining Stock. Time to Buy?
The United States is taking a strong approach to reshoring the mining and processing of rare-earth elements, and MP Materials is one of the top beneficiaries.
Investment Banks Keep Raising Their Price Target on This Rare-Earth Mining Stock. Time to Buy?
Overview
The U.S. is making a strong push to secure domestic rare-earth mining and processing. This move is primarily fueled by the fact that China currently dominates the global market, controlling a staggering 70% of mining and 90% of processing, giving the country considerable influence in international negotiations.
The U.S. entered into a historic arrangement with MP Materials (NYSE: MP) last year, investing in the company to help it ramp up its processing capacity while also providing it with price floors for its critical magnets. Over the past month, several investment banks have raised their price targets on the company. Here's what investors need to know.
Details
MP Materials is the only fully integrated Western rare-earth producer that also owns the largest rare-earth mine in the U.S. at Mountain Pass. Last year, the company entered into a landmark public-private partnership with the U.S. government to purchase its neodymium-praseodymium (NdPr) products, which are used in critical rare-earth magnets for electric vehicles, robotics, and defense.
Source
Originally published at www.fool.com.
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