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BUZZ-Street View: MP Materials to still benefit from rare earths demand despite lower sales
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BUZZ-Street View: MP Materials to still benefit from rare earths demand despite lower sales

** Shares of MP Materials Corp MP.N fall 1.6% to $12.48 premarket

** Co reports Q2 adj. loss of 17 cents/shr, bigger than estimate of 9 cents/shr- LSEG data

** Reports 43% lower sales of rare earths concentrate from year-ago

** Expects production of and praseodymium (NdPr) to double in Q3


COMMERCIAL CONTRACTS BOOST CONFIDENCE

** D.A. Davidson (PT $24, "buy") says "Q2 2024 sales $9 mln light of our view" but "additional impressive commercial successes during the quarter, including NdPr supply contracts signed with the Department of Defense and a major global auto OEM"

** TD Cowen (PT $22, "buy") says production impacted by downtime, but ramp up of operations at Stage II, "growing downstream commitments and gov't support could suggest compelling future demand signals"

** Jefferies ("buy") cuts PT to $21 from $24, but says "company making solid headway on optimization and cost reduction in its separations business, which should help MP improve its output and cost per unit in H2 2024"

** MP down ~36% YTD as of last close


(Reporting by Seher Dareen in Bengaluru)

((Seher.Dareen@thomsonreuters.com;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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