- MP Materials (NYSE:MP) jumped almost 10% after Morgan Stanley initiated the shares earlier with an overweight rating and a $57 price target with the title of the research report "If You Like EV, You'll Love MP."
- MP expected to benefit as its the largest U.S.-based miner of rare earths and its a play on electric vehicles and electrification trends in wind turbines, according to Morgan Stanley analyst Carlos De Alba.
- De Alba said MP is poised to benefit from secular demand growth from green energy applications. He calls the company a "transformational story" with a fully funded balance sheet.
- In addition, MP Materials should benefit as U.S. national security incentives will favor a U.S.-based producer since currently China is home to 84% of the refined rare earth production.
- The shares got a boost during the 1pm hour when De Alba appeared on CNBC to discuss his initiation of the stock.
- MP short interest 11.6% of float.
- Recall Feb. 16, China sets sights on rare earths as trade war persists - FT.
- Recall Oct. 1, Rare-earth metal producers up on Trump move to expand domestic production.