USA Rare Earth Shares Surge 13.48% on Venezuela Speculation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: Fool
- Significant Stock Surge: USA Rare Earth shares rose by 13.48% today, reaching $17.93, with a market capitalization of $2.3 billion, reflecting strong investor confidence in the company's growth potential.
- Venezuelan Opportunity: Speculation about favorable trade relations with Venezuela presents USA Rare Earth with the chance to procure rare earth elements for its Stillwater, Oklahoma magnet production facility, thereby reducing reliance on Chinese materials and enhancing business stability.
- Market Reaction: Amid China's export restrictions on rare earth elements, investor expectations for support of USA Rare Earth have intensified, potentially leading to further stock price appreciation, highlighting market concerns over domestic rare earth supply security.
- Future Outlook: Should USA Rare Earth successfully secure non-China sourced rare earth materials, it would significantly derisk its business model and lay the groundwork for the development of the Round Top deposit in Texas by 2028, driving long-term profitability.
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: 16.790
Low
15.00
Averages
22.75
High
28.00
Current: 16.790
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.
