MP - MP Materials catch bid as Jefferies starts with Buy recommendation

MP Materials (MP +9.2%) could be headed for its highest close in eight months after analysts at Jefferies and Benchmark initiated coverage with generally optimistic views. "MP Materials is well-positioned to evolve from a provider of rare-earth concentrate, and soon refined NdPr, into a fully-integrated magnet producer, and eventual recycler," according to Jefferies' Laurence Alexander, who launches coverage with a Buy rating and $55 price target. NdPr stands for neodymium and praseodymium, elements used in magnets for high-end electric motors that power machinery such as electric vehicles. MP wants to evolve from just mining to a vertically integrated producer of products that ship to motor makers, and Alexander believes the company has enough free cash flow and cash on hand to execute its plan. Benchmark analyst Subash Chandra starts MP at Hold, seeing the stock as too expensive but a "one-of-a-kind" company that is the "largest rare-earth producer in the western

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MP Materials catch bid as Jefferies starts with Buy recommendation