DA Davidson Reiterates Buy on MP Materials, Raises PT to $82

DA Davidson Reiterates Buy on MP Materials, Raises PT to $82

Brokerage D.A. Davidson has once again reiterated its "buy" rating on MP Materials (NYSE: MP) while raising its price target to $82, up from $32. The new target represents an upside of approximately 15% from the stock's last close, reflecting the brokerage's optimism about the company's recent strategic deals and operational progress.

The revised price target is largely driven by MP Materials' recent agreement with the U.S. Department of Defense (DoD) and its supply deal with Apple (AAPL). The DoD agreement includes a floor price arrangement for neodymium-praseodymium (NdPr) products, which is expected to insulate MP from downward price volatility while also maintaining upside potential if commodity prices appreciate beyond the floor price.

In addition to the DoD deal, MP Materials has also been working on expanding its value streams, including ramping up its Stage II oxide refinement and existing line in Fort Worth. The company aims to build out multiple value streams to enhance its overall value proposition in the rare earth supply chain.

The brokerage's decision to raise the price target comes amidst strong analyst support. As of the last close, 9 out of 13 brokerages rate the stock "buy" or higher, with a median price target of $78. The stock has shown remarkable momentum, delivering a 356% return year-to-date (YTD) and trading near its 52-week high of $82.50.

In a recent earnings report, MP Materials exceeded market expectations, posting an earnings per share (EPS) of -$0.13, which was better than the forecasted -$0.20. Revenue also surpassed expectations, reaching $57.39 million against a forecast of $46.67 million. The company's strong financial health is supported by a healthy current ratio of 3.6 and moderate debt levels.

However, not all analysts are optimistic about the stock's valuation. InvestingPro analysis suggests that the stock appears overvalued at current levels, with 6 analysts revising their earnings upward for the upcoming period, with analyst targets ranging from $32 to $85.

Despite the mixed analyst sentiment, D.A. Davidson remains bullish on MP Materials, highlighting the company's strategic partnerships and operational advancements as key drivers of its growth prospects.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP0VZ:0-d-a-davidson-raises-price-target-on-mp-materials/
[2] https://www.investing.com/news/analyst-ratings/mp-materials-stock-price-target-raised-to-82-from-32-at-da-davidson-93CH-4219357