MP Materials (NYSE:MP) Stock Price Target Cut by Canaccord Genuity Group

Key Points

• Canaccord Genuity cut its MP Materials price target from $82 to $70 but maintained a Buy rating; the new target implies 88.73% upside from the prior close.
• Analyst sentiment is broadly positive: the consensus rating is Moderate Buy with an average $70 target, though recent recommendations range from Strong Buy to Sell.
• MP Materials reported quarterly EPS of $0.04, beating estimates of a $0.02 loss, while revenue of $147.66 million exceeded forecasts and rose 175.7% year over year.

MP Materials (NYSE:MP - Get Free Report) had its price target decreased by research analysts at Canaccord Genuity Group from $82.00 to $70.00 in a research report issued on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Canaccord Genuity Group's target price suggests a potential upside of 88.73% from the company's previous close.

Other equities analysts have also issued reports about the stock. DA Davidson reiterated a "buy" rating and set a $82.00 target price on shares of MP Materials in a research report on Monday, August 24th. Robert W. Baird lowered their price target on shares of MP Materials from $80.00 to $65.00 and set an "outperform" rating for the company in a report on Thursday, October 1st. Jefferies Financial Group restated a "buy" rating on shares of MP Materials in a research report on Tuesday, September 8th. Zacks Research cut shares of MP Materials from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Finally, Freedom Broker initiated coverage on MP Materials in a report on Wednesday, September 16th. They set a "hold" rating and a $57.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $70.00.

MP Materials Price Performance

Shares of MP Materials stock traded up $1.68 during mid-day trading on Monday, reaching $37.09. 3,219,888 shares of the stock were exchanged, compared to its average volume of 6,370,402. MP Materials has a fifty-two week low of $31.90 and a fifty-two week high of $76.80. The company has a market cap of $6.61 billion, a price-to-earnings ratio of -168.80 and a beta of 2.05. The firm has a 50-day simple moving average of $45.65 and a 200 day simple moving average of $54.44. The company has a current ratio of 6.75, a quick ratio of 6.04 and a debt-to-equity ratio of 0.48.

MP Materials (NYSE:MP - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.02) by $0.06. The company had revenue of $147.66 million for the quarter, compared to analyst estimates of $117.37 million. MP Materials had a negative return on equity of 0.05% and a negative net margin of 9.90%. The business's revenue was up 175.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.10) earnings per share. On average, sell-side analysts predict that MP Materials will post -0.21 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MP. Bank of New York Mellon Corp bought a new stake in shares of MP Materials in the second quarter valued at about $65,230,000. State Street Corp boosted its position in shares of MP Materials by 5.1% during the second quarter. State Street Corp now owns 7,773,746 shares of the company's stock worth $435,408,000 after buying an additional 376,519 shares during the period. Amundi boosted its position in shares of MP Materials by 260.2% during the first quarter. Amundi now owns 385,001 shares of the company's stock worth $18,580,000 after buying an additional 278,126 shares during the period. Principal Financial Group Inc. grew its holdings in shares of MP Materials by 32.4% during the first quarter. Principal Financial Group Inc. now owns 919,083 shares of the company's stock worth $44,355,000 after buying an additional 225,009 shares in the last quarter. Finally, Teamwork Financial Advisors LLC bought a new position in shares of MP Materials during the second quarter worth about $10,648,000. 52.55% of the stock is currently owned by institutional investors and hedge funds.

MP Materials Company Profile

MP Materials operates the Mountain Pass rare earth mine and processing facility in California. The site is a major North American source of rare earth materials, which are used in products such as electric vehicles, wind turbines, electronics and defense systems.

The company mines and processes rare earth ore into concentrate and separated products, including neodymium-praseodymium (NdPr), a key input for high-strength permanent magnets. MP Materials is also developing domestic magnet manufacturing capabilities to extend its business further along the supply chain.

Mountain Pass has a long history of rare earth production, and MP Materials acquired the site's operating assets in 2017.

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