USA Rare Earth Shares Rise Amid Strong Investment Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Stock Price Surge: USA Rare Earth shares rose nearly 2% in after-market trading with trading volume spiking to nearly 13 times its average daily volume, indicating strong market confidence in the company's growth prospects.
- Investment Goals: The company aims to extract 40,000 metric tons of rare-earth and critical-mineral feedstock daily from its Round Top deposit by 2030, with commercial production expected to start in 2028, thereby establishing a fully domestic rare earth value chain.
- Government Backing: The Trump administration announced a formal $1.6 billion investment in the company, including $277 million in federal funding and a $1.3 billion senior secured loan, which is expected to significantly strengthen domestic production and supply chains for rare earth minerals.
- Analyst Rating Upgrade: Roth Capital raised its price target for USA Rare Earth from $25 to $35 while maintaining a 'Buy' rating, implying a 31% upside from the company's last closing price, reflecting optimistic market expectations for its future development.
Analyst Views on USAR
Wall Street analysts forecast USAR stock price to fall 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: 24.770
Low
15.00
Averages
22.75
High
28.00
Current: 24.770
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.
