Morgan Stanley Upgrades MP Materials (MP) to Overweight on US Supply Chain Push and Rare Earth Outlook

MP Materials Corp. (NYSE:MP) is one of the high short interest stocks to buy right now. On December 5, Morgan Stanley upgraded MP Materials to Overweight from Equal Weight with a price target of $71, up from $68.5. Morgan Stanley believes that the US’s critical mineral dependency issues are not resolved by China’s one-year pause on rare earth restrictions. As the US seeks to develop a robust supply chain outside of China, MP is well-positioned to benefit.

Earlier in the company’s Q3 2025 earnings report, MP Materials Corp highlighted record production and key strategic advancements. The company achieved a record NDPR oxide production of 721 metric tons, which marked a 21% sequential increase and a 51% year-over-year increase. MP also set records in sales volumes, showing strong sequential and year-over-year growth. MP Materials is on track to start commissioning its heavy rare earth circuit in mid-2026. This initiative will enable the production of 10,000 metric tons of high-performance NDFEB magnets annually.

Additionally, a major partnership with Apple (NASDAQ:AAPL) has commenced, marked by a $40 million prepayment for the production of magnets from recycled materials, with a total of $200 million expected as the project progresses. The company anticipates the next payment from Apple in Q4, with initial magnet volumes targeting mid-2027 and recycling shortly after. This partnership, alongside the long-term Purchase Price Agreement with the Department of War, provides earnings visibility and is expected to help the company return to profitability in Q4 2025.

MP Materials Corp. (NYSE:MP), together with its subsidiaries, produces rare earth materials in the Western Hemisphere. The company operates in two segments: Materials and Magnetics.

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