Investing
USA Rare Earth (Nasdaq: USAR) Up 15% Thursday, This is What Wall Street Thinks of the Stock
Published:
Key Points
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The rare earth stock rally is being fueled by President Trump’s intention to stockpile critical deep-sea metals to counter China’s rare earth dominance.
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Analysts at Benchmark have a buy rating on the USAR stock with a price target of $15 per share.
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USA Rare Earth (NASDAQ: USAR), a leader in mining, processing and supplying rare earths, is up more than 18% to $12.85.
The rally is being fueled by President Trump’s intention to stockpile critical deep-sea metals to counter China’s rare earth dominance. We also have to consider that China curbed rare earth exports to the United States, underscoring our desperate need for supply outside of China.
For years, the U.S. has been overly dependent on China, which controls about 80% of the world’s rare earth supply. However, as we’ve learned the hard way, that has to change.
After all, without rare earths, the world can’t produce the millions of electric vehicles government leaders want on the roads. We can’t produce smartphones, computers, flat panel televisions, wind turbines, electric vehicle batteries, computer chips, defense equipment, semiconductors, digital cameras, or catalytic converters. Even the U.S. Department of Defense could run low on rare earths for rare earths and other warfighting products.
Wall Street’s View on USA Rare Earth
Most recently, analysts at Benchmark have a buy rating on the USAR stock with a price target of $15 per share. The firm cites a recent executive order from President Trump that prioritizes the development of rare earths in the United States. They also cited the company’s commercial production of rare earth magnets by 2026.
According to Metal Tech News, “USA Rare Earth’s Oklahoma plant is expected to produce 1,200 metric tons of neodymium magnets during the first phase of commercial production, which is expected to be reached next year. The company plans to expand the facility’s capacity to nearly 5,000 tons per year in future phases.”
Once up and running, the plant is expected to support revenue of $700 million to $800 million in estimated annual revenue.
Other rare earth stocks are also gaining momentum. MP Materials (NYSE: MP), for example, is up 11% to $25.43. Lynas Rare Earths (OTCMKTS: LYSCF) is up about 2.5% to $5.40. With the rare earth supply story gaining momentum, we do expect for stocks like USA Rare Earth to push aggressively higher.
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