MP Materials raised at Deutsche Bank as 'long-term thematic play on fundamental value'

[Modern industry depends on mining for the valuable rare-earth, rare earth crystal detail]
Joaquin Corbalan/iStock via Getty Images

MP Materials (MP [https://seekingalpha.com/symbol/MP]) +10.5% in Monday's trading as Deutsche Bank upgraded shares to Buy from Neutral with a $71 price target, bumped up from $68, believing the company now represents a buying opportunity for investors seeking exposure to the thematic of critical minerals and rare earth for the medium- to long-term.

Deutsche Bank's Corrine Blanchard sees a clear growth path ahead for MP (MP [https://seekingalpha.com/symbol/MP]) with an elevated pricing floor support from the U.S. government of $110/kg and volumes growth through heavy refining, magnet and recycling, placing the company in a strategic and unique position.

Blanchard believes further upside in numbers could be coming in the coming quarters, depending on refinery progress and whether a mine plan optimization could come into play at Mountain Pass, although the analyst thinks those would be medium- to long-term added opportunities.

In its earnings update last week [https://seekingalpha.com/news/4518192-mp-materials-accelerates-u-s-supply-chain-integration-signals-ndfeb-magnet-production-by-year], MP (MP [https://seekingalpha.com/symbol/MP]) unveiled details on the U.S. Department of War agreement and floor price mechanisms, which Blanchard said are not accounted for in current Streetestimates and unlikely from many investors, and based on conversations with company management assumes current stockpiles and inventory will benefit from the $110/kg floor price once converted to sale.

MP (MP [https://seekingalpha.com/symbol/MP]) "has proved its ability to execute in the last years, from restarting the mine, to stage 2, to magnet production, and we are confident in MP's path ahead," Blanchard wrote, adding that while noting execution will remain key for investors in the coming quarters and with potential for further downside pressure on the stock, she believes such a move would be short-lived.

MORE ON MP MATERIALS

* MP Materials Q3 2025 Earnings Call Presentation [https://seekingalpha.com/article/4839714-mp-materials-corp-2025-q3-results-earnings-call-presentation]
* MP Materials: A Pawn In The Rare-Earth Tug Of War (Rating Downgrade) [https://seekingalpha.com/article/4838172-mp-materials-a-pawn-in-the-rare-earth-tug-of-war-rating-downgrade]
* MP Materials: Good For America, Bad For Your Portfolio [https://seekingalpha.com/article/4837986-mp-materials-good-for-america-bad-for-your-portfolio]