BMO Capital Initiates MP Materials (MP) With a Hold Rating

​MP Materials Corp. (NYSE:MP) is one of the Hottest Large-Cap Stocks to Buy Now. On October 8, Raj Ray from BMO Capital initiated a Hold rating on MP Materials Corp. (NYSE:MP) with an associated price target of $76.

​MP Materials Corp. (NYSE:MP) has established itself as a leader in the US rare earth industry with its 10-year strategic partnership with the Department of Defense, said the analyst in a research note. He added that the partnership provides the company with financial stability, guarantees EBITDA margins, and ensures a predictable earnings stream.

However, Ray expressed his concern, noting that the market has seemed to already price in the company’s future earnings potential, thereby leading to a fair valuation and a hold rating.

​In addition, Ray noted that although the deal provides the company with a significant competitive edge and also reduces commodity price risks, the focus now shifts to the management’s ability to deliver. He also added that the significant increase in stock price on a year-to-date basis suggests that MP Materials Corp. (NYSE:MP) would need further catalysts to drive the stock price higher.

​MP Materials Corp. (NYSE:MP) deals in producing specialty materials essential for electrification products and other advanced technologies.

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Disclosure: None. This article is originally published at Insider Monkey.