A wheel loader operator fills a truck with ore on January 30, 2020 in Mountain Pass in Mountain Pass, California.
Steve Marcus | Reuters
The rare earth-mountain man MP materials It will enjoy the strategic value for the USA, since, according to Morgan Stanley, geopolitical tensions with China make the care of critical minerals more insecure.
The investment bank has upgraded MP materials with a share price target of $ 34 per share to the equivalent of a merchant, which turns 32% upside down after the end of Friday.
MP Materials has the only operating rare dates in the USA on Mountain Pass, California. According to Morgan Stanley, China dominates the global market for refining and processing rare earths.
“Geopolitical and trade tensions finally urge critical mineral supply chains in harmony,” said analysts of Carlos de Alba in a Thursday that was run by Carlos de Alba. “MP is the vertically integrated company for rare earth ex-China.”
In April, Beijing imposed export restrictions on seven rare elements in response to the tariffs of President Donald Trump. It has retained these restrictions with us despite trading talks
Trump removed some restrictions on the Defense Production Act on Wednesday, which could enable the federal government to offer one about the market price for rare earths. According to Morgan Stanley, MP Materials is the best company that benefits from it. The stocks rose by more than 5%on Thursday.
According to Morgan Stanley, MP Materials develops a completely domestic supply chain for rare earth chain in the USA and plans to start the commercial production of magnets that are used in most electric vehicle engines, offshore wind turbines and the future market for humanoid robots.
Investment bank expects MP materials to set up a negative free cash flow this year and 2026, but the company has accelerated a positive Free Cashflow a strong balance from 2027.