Morgan Stanley Maintains Hold Rating on MP Materials (MP) Stock

MP Materials Corp. (NYSE:MP) is one of the Best Mining Stocks to Buy According to Hedge Funds. On September 2, Morgan Stanley analyst Carlos De Alba maintained a “Hold” rating on the company’s stock and set a price objective of $65.00. The analyst’s rating is backed by a combination of factors demonstrating both opportunities and risks. As per the analyst, MP Materials Corp. (NYSE:MP) has been developing a fully domestic supply chain for rare earth materials, which happens to be a strategic advantage, mainly with its partnership with the Department of Defense.

Morgan Stanley Maintains Hold Rating on MP Materials (MP) Stock

The analyst believes that this collaboration has reduced some of the risks, and MP Materials Corp. (NYSE:MP) remains on track to begin commercial production of critical components by 2025 end. However, despite the positive developments, there are worries about project execution, which is a significant risk, highlighted the analyst. MP Materials Corp. (NYSE:MP) believes that its partnerships with the Department of Defense and Apple are expected to fuel significant long-term profitability and place the company as a platform for sustained growth amidst the emerging era of physical AI.

MP Materials Corp. (NYSE:MP) is America’s only fully integrated rare earth producer whose capabilities span the entire supply chain, i.e., from mining and processing to advanced metallization and magnet manufacturing.

While we acknowledge the potential of MP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MP and that has 100x upside potential, check out our report about this cheapest AI stock.

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