Here's Why MP Materials Stock Surged Higher This Week

Shares in rare-earth materials and magnets company MP Materials (NYSE: MP) rose by 12.3% in the week to Friday morning. The move comes as a BMO analyst upgraded his target on the stock from "hold" to "buy" and gave it a $75 price target.The upgrade comes after a recent sell-off off which the analyst believes is creating a useful entry point. Moreover, the company's long-term fundamentals could be enhanced by the recent partnership announced with the Department of Defense (DoD) and the Saudi Arabian Mining Company (Maaden). The deal involves a joint venture between the DoD and MP Materials, which will hold a 49% stake in a joint venture with Maaden to build a rare-earth refinery in Saudi Arabia. Not only is the deal positive in itself, but it also strengthens the public-private partnership with the DoD and cements MP Materials' strategic importance in helping the U.S. secure a domestic supply of rare-earth materials and magnets. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool