DA Davidson Sticks With Purchase on MP Supplies (MP) on DoD Deal
MP Supplies Corp. (NYSE:MP) is without doubt one of the greatest electrical car provide chain shares to purchase proper now. On September 2, DA Davidson maintained its Purchase score on uncommon earth mining firm MP Supplies Corp. (NYSE:MP), whereas growing its 12-month value goal from $32 to $82. As of September 5, the inventory was buying and selling at $62.75, giving it an implied upside of 30.68%.
The agency cited the corporate’s Q2 outcomes, together with the announcement of the Division of Protection settlement, which features a ground value deal for all NdPr merchandise. NdPr is a mix of neodymium (Nd) and praseodymium (Pr). These are 2 uncommon earth supplies. NdPr is MP Supplies’ key product and is without doubt one of the most strategically important supplies within the fashionable electrification economic system. DA Davidson added that the NdPr output continues to extend steadily, with the output close to a document stage.
The corporate reported a 283% soar in NdPr income in Q2 2025, pushed by a 226% improve in gross sales quantity and better costs. MP Supplies mentioned that it has halted gross sales to China so as to deal with constructing a U.S. uncommon earth provide chain. Rising NdPr output and pricing are anticipated to spice up future revenues, reinforcing its strategic function within the home EV and protection industries.
Wall Avenue analysts count on the corporate’s income to develop at a mean annual compounded price of 36.13% over the subsequent 5 years, and so they count on the corporate to be worthwhile by subsequent 12 months.
Whereas we acknowledge the potential of MP as an funding, we imagine sure AI shares provide better upside potential and carry much less draw back danger. For those who’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the greatest short-term AI inventory.
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