MP Materials Corp. (NYSE:MP) rose Friday after a mixed quarterly update signaled improving profitability trends and steady momentum in magnetics.
The company also outlined progress toward domestic heavy rare earth separation, bolstering sentiment around its long-term strategy.
On November 6, MP Materials reported third-quarter revenue of $53.55 million, missing analyst estimates of $54.92 million, according to Benzinga Pro.
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The company reported a third-quarter adjusted loss of 10 cents per share, beating analyst estimates for a loss of 18 cents per share.
DA Davidson analyst Matt J. Summerville reiterated a Buy rating on the stock, with a price forecast of $82.
Analyst’s Take
Analyst Summerville said MP’s third-quarter sales were in line with expectations, with adjusted EBITDA of negative $13 million, modestly ahead of his model.
He noted adjusted EBITDA improved from negative $11 million a year earlier and came in $1 million better than his negative $14 million forecast.
Summerville said magnetics revenue was slightly above his projection, while oxide sales came in a bit lighter due to lower volume.
He added that lower tons sold were partly offset by better price realization.
As expected, third-quarter REO concentrate volume was zero as MP follows the DoW agreement to halt sales to China. Summerville said the DoW price floor agreement began in October.
According to the analyst, MP will begin commissioning its new heavy rare earth separation facility at Mountain Pass in mid-2026.
The facility will first focus on producing dysprosium and terbium, followed by samarium.
Summerville said nameplate capacity is 200 metric tons per year for the Dy/Tb circuit and can handle about 3,000 metric tons of feedstock.
He added the site will process MP’s own heavy concentrate, stockpiled material and third-party feedstock from new sources.
Price Action: MP shares were trading higher by 8.37% to $56.30 at last check Friday.
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