Morgan Stanley lauded MP Materials’ focus on managing the critical rare earth minerals supply chain, believing that it is the most vertically integrated rare earth metals company ex-China.

Shares of rare earth specialty materials miner MP Materials Corp (MP) gained 5.5% to $25.93 after Morgan Stanley upgraded the stock rating and raised its price target.

In a note released on Thursday, Morgan Stanley upgraded MP Materials stock rating to ‘Overweight’ from ‘Equal Weight’ while increasing the price target to $34 from $23, Fly reported. This represents a 31% premium on the current stock price.

The brokerage firm sees rising geopolitical tensions and growing long-term demand for robotics as key factors that could boost MP Materials’ strategic value.

The company is establishing a fully integrated rare earth-to-magnet supply chain within the U.S., aiming to start commercial production of permanent magnets by the end of 2025.

These magnets are critical for most electric vehicle motors and are experiencing rising demand in offshore wind turbines and the rapidly expanding robotics industry.

Morgan Stanley lauded MP Materials’ focus on managing the critical rare earth minerals supply chain, believing that it is the most vertically integrated rare earth metals company ex-China.

Retail sentiment toward the MP Materials stock among Stocktwits users was ‘extremely bullish’ accompanied by ‘extremely high’ message volumes.

MP Materials sentiment and message volume as of 1:34 a.m. ET, June 6 | source: Stocktwits

One user believes that MP Materials is on the cusp of a massive government investment.

Another user expects the stock to breach $30 by next week.

The discussion on rare earth minerals has been central to the trade war between the US and China. In response to US President Donald Trump’s broader tariffs on goods, Chinese President Xi Jinping suspended exports of a broad range of rare earths and related magnets in April.

The decision disrupted global supply chains vital to automakers, aerospace firms, semiconductor makers, and military contractors. 

However, on a positive note, Trump signaled a potential resolution following his call with X on Thursday, the second since he took office in January.

“There should no longer be any questions respecting the complexity of Rare Earth products. Our respective teams will be meeting shortly at a location to be determined,” Trump said in a Truth Social post.

“We will be represented by Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer.”

Year-to-date, MP Materials stock has risen over 66%.

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