BMO Says MP Materials Offers Attractive Valuation—Shares Surge 6%

(Seoul=Yonhap Infomax) Jang Won Lee Senior Reporter = Bank of Montreal (BMO), the Canadian investment bank, has upgraded its rating on rare earth mining company MP Materials from 'Market Perform' to 'Outperform'.

However, reflecting the recent decline in rare earth prices, BMO slightly lowered its 12-month price target for MP Materials from $76 to $75.

According to CNBC on the 24th (U.S. local time), Raj Ray, an analyst at Bank of Montreal, stated, "The recent decline in MP Materials' share price has been excessive," adding, "We believe the current valuation presents an attractive entry point for investors seeking exposure to the rare earths theme."

He further analyzed, "MP Materials is positioned for structural growth as a key supplier to the U.S. government."

MP Materials has drawn attention by signing a series of large-scale partnership agreements with the U.S. Department of Defense, in line with the U.S. government's strategic goal of reducing reliance on China for rare earths.

Recently, the company entered into a binding agreement with Maaden, Saudi Arabia's state-owned mining company, and the U.S. Department of Defense to establish a rare earth refining facility in Saudi Arabia.

Boosted by BMO's rating upgrade, MP Materials shares closed up $3.77 (6.82%) at $59.04.

jang73@yna.co.kr

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