China's Dominance in Rare Earth Elements: China controls the majority of the rare earth elements (REEs) market, particularly in hard REEs, which are essential for various high-tech applications. Companies are seeking to establish non-China-based supply chains to reduce dependency on Chinese resources.
Brazilian Rare Earths (BRE): BRE is positioning itself as a key player in the REE market by developing a significant mineral province in Brazil, with plans to start production by 2028 and processing by 2030, aiming to provide high-purity REEs that are less environmentally intrusive to mine.
Market Demand and Growth Potential: The demand for rare earth magnets is expected to surge, particularly due to the rise of electric vehicles and advanced technologies. Analysts predict a fivefold increase in magnet demand in the U.S. by 2035, highlighting the urgency for alternative REE sources.
Strategic Partnerships and Challenges: BRE has secured a partnership with French firm Carester for technical expertise, enhancing its production capabilities. However, challenges remain, including potential delays in permitting and market fluctuations due to China's actions.
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
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 Buy
0 Hold
0 Sell
Strong Buy
Current: 19.330
Low
15.00
Averages
22.75
High
28.00
Current: 19.330
Low
15.00
Averages
22.75
High
28.00
Benchmark
Subash Chandra
maintain
$15
2026-01-22
New
Reason
Benchmark
Subash Chandra
Price Target
$15
AI Analysis
2026-01-22
New
maintain
Reason
After USA Rare Earth announced a next step in the accelerated commercialization of the Round Top mine and selected Flour and WSP as Engineering, Procurement, and Construction Management partners for the definitive feasibility study, Benchmark analyst Subash Chandra noted that the "path to commerciality looked long and unlikely when we initiated on USAR last February," but adds that the firm now expects a "timely and conclusive DFS" for Round Top. The firm, which adds that it is "safe to say the mine has significant value at prevailing rare earths prices," has a Buy rating and $15 price target on USA Rare Earth shares.
Canaccord
Buy
maintain
$22 -> $23
2025-11-07
Reason
Canaccord
Price Target
$22 -> $23
2025-11-07
maintain
Buy
Reason
Canaccord raised the firm's price target on USA Rare Earth to $23 from $22 and keeps a Buy rating on the shares. The firm said the move to build an increasingly vertically integrated Western magnetics pioneer is taking more concrete form and shape with final commissioning expected in 1Q26.
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Roth Capital
Buy
to
Buy
downgrade
$40 -> $25
2025-11-07
Reason
Roth Capital
Price Target
$40 -> $25
2025-11-07
downgrade
Buy
to
Buy
Reason
Roth Capital kept a Buy rating and lowered the firm's price target on USA Rare Earth to $25 from $40 after its Q3 earnings miss. The company remains on track for rare earth magnet production in Oklahoma starting in early CY26, and the firm is also encouraged that it continues to secure pipeline customers that provide demand in line with the company's phase 1 capacity expansion plan, the analyst tells investors in a research note.
William Blair
Outperform
initiated
2025-10-20
Reason
William Blair
Price Target
2025-10-20
initiated
Outperform
Reason
William Blair initiated coverage of USA Rare Earth with an Outperform rating.
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.
