EV play with a decent upside potential.

MP Materials is not your average boomer mining company. It owns and operates only rare earth mining site of scale in the western hemisphere. Imagine, the strategic advantage of an oil supplier when the first internal combustion engines came out. MP is also poised to have the same sort of importance to the EV industry.    Catalyst #1 :The rare earth minerals markets is poised to reach around $2 Billion in the next 5 years with majority of the market coming from cerium, lanthanum, and NdPr. which also make MP mine's primary products  Catalyst #2 : President Biden also revealed a plan to invest $2 Trillion dollars on a green infrastructure plan focused on EVs which also should benefit MP Catalyst #3 :The company has successfully raised $1B+ to finance to build infrastructure for producing downstream rare earth products, like magnets for EV drivetrains. Catalyst #4 :MP got caught in the steep selloff in the SPAC EV & FANG stocks ,but most of its competitors remain flat, thus having more upside in the recovery.   If the stock holds support at $27.80, we should probably see it visit the local highs at $37.00.Markets are little bit spooked because of talks to increase the capital gains tax , so in the short term we could see some volatility before establishing a clear trend.

back
default-avatar-1

UpOnly

Apr 23, 2021

15.98%

Change % Since Posting

29.20

Price When Posted

4.66

Change Since Posting

MP

MP Materials Corporation - Class A

33.86

-1.23
-3.50%
Current Price

EV play with a decent upside potential.

bullish

MP Materials is not your average boomer mining company. It owns and operates only rare earth mining site of scale in the western hemisphere. Imagine, the strategic advantage of an oil supplier when the first internal combustion engines came out. MP is also poised to have the same sort of importance to the EV industry.

 

  •  Catalyst #1 :The rare earth minerals markets is poised to reach around $2 Billion in the next 5 years with majority of the market coming from cerium, lanthanum, and NdPr. which also make MP mine's primary products 
  • Catalyst #2 : President Biden also revealed a plan to invest $2 Trillion dollars on a green infrastructure plan focused on EVs which also should benefit MP
  • Catalyst #3 :The company has successfully raised $1B+ to finance to build infrastructure for producing downstream rare earth products, like magnets for EV drivetrains.
  • Catalyst #4 :MP got caught in the steep selloff in the SPAC EV & FANG stocks ,but most of its competitors remain flat, thus having more upside in the recovery.

 

If the stock holds support at $27.80, we should probably see it visit the local highs at $37.00.Markets are little bit spooked because of talks to increase the capital gains tax , so in the short term we could see some volatility before establishing a clear trend.

 

Comments

Write your comment....

Sign in to comment

read-time
1 min

36.19

Target Price

9/ 10

Confidence

2-6 Months

Timeframe
catalyst icon
Earnings Per Share
catalyst icon
Financials
catalyst icon
Management
catalyst icon
Price to Earnings Ratio
catalyst icon
Dividend
catalyst icon
Other Catalyst

MP Channel

Start new chat
aiodd-ad
next