USA Rare Earth Rated Buy, Jefferies Forecasts 21% Upside on Magnet Strategy

Jefferies initiated research coverage on USA Rare Earth, Inc. with a Buy rating.

The investment bank set a price target of $21.00 per share. This target represents a potential 21% upside from the previous closing price of $17.26.

The positive outlook stems from the company's strategy to build a vertically integrated rare earth supply chain outside of China. USA Rare Earth is currently establishing operations in the US, UK, France, and Brazil.

A key near-term goal involves ramping up magnet production at the Stillwater, Oklahoma facility. The company targets an annual output of 1,200 tons by early 2027.