USA Rare Earth (USAR) shares rose 6.4% on Monday. Investment firm Needham initiated coverage with a Buy rating and a $39 price target.
The move aligns with a broader positive outlook on the domestic rare earth minerals sector. Needham also initiated coverage on MP Materials with a Buy rating.
Analyst Carter Goman highlighted the company’s unique assets and management team. Needham expects the firm to lead the development of a domestic rare earth magnet supply chain.
This strategy aims to decouple the industry from Chinese supply. Goman noted the company is nearing a significant ramp-up in production capacity.