USA Rare Earth Inc. (NASDAQ:USAR) Receives Average Rating of “Moderate Buy” from Analysts

USA Rare Earth Inc. (NASDAQ:USAR) has earned an average rating of “Moderate Buy” from the nine research firms that are currently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation and eight have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $35.40.

A number of brokerages recently weighed in on USAR. Northland Securities initiated coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They issued an “outperform” rating and a $45.00 target price for the company. Cantor Fitzgerald boosted their price target on shares of USA Rare Earth from $28.00 to $35.00 and gave the stock an “overweight” rating in a research report on Friday, January 30th. Wedbush boosted their price target on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Tuesday. Benchmark initiated coverage on shares of USA Rare Earth in a research report on Wednesday, January 21st. They set a “buy” rating on the stock. Finally, Roth Mkm set a $30.00 price target on shares of USA Rare Earth in a research report on Monday, April 20th.

Key USA Rare Earth News

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USA Rare Earth was awarded a $14.2 million Texas Semiconductor Innovation Fund grant to speed up development of its Round Top Mountain heavy rare earth project, a supportive signal for growth and job creation that strengthens the company’s U.S.-based supply chain story.
• Positive Sentiment: Wedbush raised its price target on USA Rare Earth to $35 from $29 and reiterated an outperform rating, reflecting increased confidence in the company’s upside as it nears commercial magnet production and continues building out its mine-to-magnet strategy.
• Positive Sentiment: Recent commentary around USAR’s upcoming Q1 update highlighted momentum in its Oklahoma magnet business and support from a large financing package and federal backing, which may reinforce investor expectations for execution progress.
• Neutral Sentiment: Reports noted that USA Rare Earth is pivoting toward Western processing capacity as China tightens rare earth exports, underscoring the strategic importance of the company’s business model but not providing an immediate financial catalyst.
• Negative Sentiment: Brazil has opened a probe into USA Rare Earth’s proposed $2.8 billion deal for Serra Verde, creating regulatory uncertainty that could delay or complicate a potential strategic transaction.

USA Rare Earth Stock Down 2.9%

Shares of USAR stock opened at $25.55 on Friday. USA Rare Earth has a 12-month low of $8.00 and a 12-month high of $43.98. The firm has a market capitalization of $5.57 billion, a price-to-earnings ratio of -8.52 and a beta of 2.38. The firm has a fifty day moving average of $19.72 and a 200-day moving average of $18.35.

USA Rare Earth (NASDAQ:USAR) last announced its earnings results on Monday, March 30th. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.07). The company had revenue of $1.64 million for the quarter. Research analysts expect that USA Rare Earth will post -0.76 earnings per share for the current year.

Institutional Investors Weigh In On USA Rare Earth

A number of institutional investors and hedge funds have recently modified their holdings of USAR. NewEdge Advisors LLC raised its holdings in shares of USA Rare Earth by 158.2% in the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after purchasing an additional 1,424 shares during the period. Raymond James Financial Inc. bought a new stake in shares of USA Rare Earth in the 2nd quarter valued at about $223,000. Lighthouse Investment Partners LLC bought a new stake in shares of USA Rare Earth in the 2nd quarter valued at about $329,000. Bank of America Corp DE raised its holdings in shares of USA Rare Earth by 465.7% in the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company’s stock valued at $2,659,000 after purchasing an additional 199,819 shares during the period. Finally, LMR Partners LLP bought a new stake in shares of USA Rare Earth in the 2nd quarter valued at about $145,000.

About USA Rare Earth

USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.