MP Materials (MP, Financial) recently secured a significant $500 million agreement with Apple, marking a promising development for the company's growth trajectory. This new deal follows a strategic partnership with the Department of Defense, positioning Apple as a key customer for MP's recycling operations. Analysts at Baird highlight that the agreement with Apple was finalized faster than expected, which is anticipated to positively impact demand for magnets and optimize the company's remaining capacity.
Baird remains optimistic about MP's prospects, assigning an Outperform rating and setting a $52 target price for the stock. Following this announcement, MP's stock surged by 18%, reaching a trading price of $57.19 in the morning session. The collaboration with a major player like Apple is expected to elevate MP Materials' market position, paving the way for sustained growth in the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for MP Materials Corp (MP, Financial) is $37.46 with a high estimate of $55.00 and a low estimate of $20.00. The average target implies an downside of 34.15% from the current price of $56.89. More detailed estimate data can be found on the MP Materials Corp (MP) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, MP Materials Corp's (MP, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MP Materials Corp (MP, Financial) in one year is $27.65, suggesting a downside of 51.4% from the current price of $56.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MP Materials Corp (MP) Summary page.
