MP Materials: Buy Dip In Rare Earth Giant With Huge Upside

Oriental Trader1.75K FollowersFollow5ShareSavePlay(9min)Comments(3)SummaryMP Materials is upgraded to buy after a 6-month price lull, reflecting renewed conviction in its long-term fundamentals.MP stands as the undisputed leader in rare earth refining in the Western Hemisphere, benefiting from minimal North American competition.Management targets $650M normalized EBITDA at 10,000 metric tons, with potential for multi-billion EBITDA if capacity expands further.MP is a strategic American supply chain independence play, though timing for market recognition remains uncertain and headline-driven. aprott/iStock via Getty Images I initiated coverage on MP Materials Corp. (MP), a leading rare earth miner and soon-to-be refiner in the US, in January 2024 when it was $17.96/share, which is still up 177% at current prices of $50/share.This article was written byOriental Trader1.75K FollowersFollowFocus on trying to piece together the big things (both at a macro and industry level) Twenty years in Asia (mainly China).Analyst’s Disclosure: I/we have a beneficial long position in the shares of MP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.