French Government Backs LCM Europe with €130 Million Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: stocktwits
- Government Funding Support: The French government has committed to addressing LCM Europe's capital and operating needs by approving direct credits under the C3IV program, allowing up to €130 million for real estate and 45% for eligible equipment, significantly easing financial burdens and facilitating expansion in France.
- New Facility Construction: LCM Europe plans to develop a 3,750 metric ton per annum metal and alloy production facility in Lacq, France, which is expected to enhance local production capabilities and strengthen the company's competitive position in the rare earth metals market.
- Talent Development Initiatives: The French government is also interested in supporting hiring and training programs at LCM Europe's new facility, which will enhance talent development and skills building, contributing to the company's long-term growth.
- Positive Market Reaction: Shares of USA Rare Earth surged 58% following the announcement, indicating strong market expectations for the establishment of a metal-making platform in France, further solidifying its position in the global rare earth value chain.
Analyst Views on USAR
Wall Street analysts forecast USAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for USAR is 22.75 USD with a low forecast of 15.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 22.710
Low
15.00
Averages
22.75
High
28.00
Current: 22.710
Low
15.00
Averages
22.75
High
28.00
About USAR
USA Rare Earth, Inc. is a supplier of sintered neo magnets and other rare earth metals. The Company is engaged in developing a NdFeB magnet manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. It is focused on developing domestic rare earth production that offers sustainable and secure domestic supply of materials critical to key industries. Its vertically integrated approach consists of sourcing rare earth elements (REEs), in addition to other critical minerals such as gallium, to producing finished NdFeB magnets. The Company serve a variety of industries, such as defense, robotics, electric vehicles, wind power, appliances, cordless tools and computing and semiconductors. The Company owns, Less Common Metals Ltd., which is a scaled ex-China rare earth metal and alloy manufacturer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
