Update shared on20 Aug 2025
Fair value Increased 18%Driven by a significant increase in both Future P/E and Net Profit Margin, analysts have raised MP Materials’ consensus price target from $56.80 to $67.00.
What's in the News
- MP Materials completed a $649.99 million follow-on equity offering of 11,818,181 common shares at $55 each, following the filing for a $500 million equity offering.
- Entered a definitive, long-term $500 million agreement with Apple to supply domestically produced, 100% recycled rare earth magnets from its expanded Fort Worth, Texas facility, with magnet shipments beginning in 2027.
- Announced a transformational public-private partnership with the U.S. Department of Defense, including a multibillion-dollar investment package to build a second U.S. magnet facility (“10X Facility”), increase rare earth separation at Mountain Pass, and provide long-term offtake and price floor commitments.
- Secured $1 billion credit commitment from JPMorgan Chase and Goldman Sachs for construction of the 10X Facility, and a $150 million loan from the DoD for Mountain Pass expansion, with the DoD also agreeing to purchase $400 million in convertible preferred stock and a warrant for additional shares.
- Completed the repurchase of 15,249,782 shares (8.66%) for $225.03 million under the announced buyback program, with no shares repurchased in the most recent quarter.
Valuation Changes
Summary of Valuation Changes for MP Materials
- The Consensus Analyst Price Target has significantly risen from $56.80 to $67.00.
- The Future P/E for MP Materials has significantly risen from 50.40x to 65.93x.
- The Net Profit Margin for MP Materials has risen from 22.86% to 24.98%.
Disclaimer
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