Wall Street Sees a ‘Buying Opportunity’ in This Rare Earths Stock. Should You Snap Up Shares Now?

Core Viewpoint - Wall Street is increasingly interested in rare earth stocks, particularly MP Materials, which has received significant government investment and is a leading player in the U.S. rare earth market [1][2]. Company Overview - MP Materials operates the Mountain Pass mine in California and has received a $9.6 million tech investment in November 2020, followed by a $400 million equity stake in July 2025 for magnet manufacturing facilities [2]. - The company also signed a $500 million deal with Apple, highlighting its strategic partnerships [2]. Stock Performance - MP stock experienced a dramatic rise of over 310% from its low in May 2025 to its peak in October 2025, but has since corrected by almost 30%, currently trading at $57 [3]. - Analysts are optimistic about the stock's future, with Deutsche Bank raising its price target from $68 to $71 and upgrading the rating from "Hold" to "Buy" [4]. Analyst Insights - Deutsche Bank analyst Corinne Blanchard believes MP stock is now trading on its fundamental value and represents a good entry point for investors [5]. - The rationale for the upgrade is based on the belief that the stock's price has decreased enough to make the potential upside worth the risk [5]. Market Fundamentals - The CEO of MP Materials indicated that the current quarter will be crucial for cash flow and production [6]. - The company is expected to benefit from the government's $110 per kilogram floor price for neodymium-praseodymium (NdPr) oxide, which is nearly double the current market price [6].