MP - MP Materials raised to Buy at Benchmark ahead of magnet production ramp

MP Materials (MP +3.6%) is on the move after Benchmark upgrades shares to Buy from Hold with a $47 price target, driven by the rise in light rare earths prices since Q3. MP's decision to build a high-performance permanent magnet facility in Texas spanning 200K sq. ft. is "timely," Benchmark's Subash Chandra said, as China's consolidation of rare earth production to two entities from six previously is "a precursor to rationalization of the permanent magnet market." Chandra also said the company's recent agreement to supply General Motors with magnets will minimize the risk of MP's expansion plans to upgrade its own mined materials. MP's magnets will be priced at a premium, but Chandra believes U.S. buyers may be willing to pay more for a local supply chain with relatively green credentials. MP shares have recovered all losses caused by the Bonitas Research short report published earlier this month.

For further details see:

MP Materials raised to Buy at Benchmark ahead of magnet production ramp