UPDATE: BofA Securities Reinstates MP Materials (MP) at Buy

(Updated - November 30, 2021 7:13 AM EST)

BofA Securities analyst Timna Tanners reinstates coverage on MP Materials (NYSE: MP) with a Buy rating and a price target of $52.00.

The analyst comments "We reinstate coverage of MP Materials (MP) with a Buy rating. We set a price objective (PO) of $52 per share based on 18x 2023E EBITDA. The 18x is roughly a 25% premium to Australian mining peer Lynas Rare Earths (LYC), closer to the current next twelve month (NTM) EV/EBITDA premium. Through 2021, MP has traded at an 83% premium on average. 18x is well below the high end of pure-play electric vehicle commodity suppliers at 21x. We see MP as unique US equity exposure to a critical raw material, rare-earths. MP is headquartered in Las Vegas and owns and operates Mountain Pass in California, the only scaled rare earth mining and processing facility in the Western Hemisphere."

For an analyst ratings summary and ratings history on MP Materials click here. For more ratings news on MP Materials click here.

Shares of MP Materials closed at $45.37 yesterday.

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