--- title: "Needham is bullish on the American rare earth duopoly! MP Materials and USA Rare Earth respond with a rise" type: "News" locale: "en" url: "https://longbridge.com/en/news/288378674.md" description: "Investment bank Needham initiated coverage on MP Materials and USA Rare Earth, both giving a \"Buy\" rating, with target prices of $81 and $39, respectively. Analysts believe MP Materials is the leader in rare earths in the Western Hemisphere, benefiting from supply chain diversification and long-term demand growth; USA Rare Earth is expected to reduce its dependence on China due to its unique asset portfolio. Boosted by this news, both stocks rose 7.09% and 5.07% in U.S. trading on Monday" datetime: "2026-06-02T07:02:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288378674.md) - [en](https://longbridge.com/en/news/288378674.md) - [zh-HK](https://longbridge.com/zh-HK/news/288378674.md) --- # Needham is bullish on the American rare earth duopoly! MP Materials and USA Rare Earth respond with a rise According to the Zhitong Finance APP, **investment bank Needham has initiated coverage on MP Materials (MP.US) and USA Rare Earth (USAR.US), assigning a "Buy" rating with target prices of $81 and $39, respectively.** Boosted by this news, these two rare earth concept stocks rose by 7.09% and 5.07% in U.S. trading on Monday. For MP Materials, Needham analyst Carter Goman believes that as the largest rare earth material producer in the Western Hemisphere, MP Materials is a "clear leader" in the industry with a "first-mover advantage." He thinks that as global supply chains become increasingly differentiated, the rare earth industry is at the early stages of a sustained multi-year investment cycle. The analyst stated that despite the market announcing a large number of new capacity plans, given the existing operational foundation of the Mountain Pass mine and the strength of the company's management team, the probability of MP Materials achieving its targets is among the highest in the industry. The analyst wrote: "As we move into the second half of this decade and the 2030s, market attention should shift back to demand growth, including the broader adoption of electric vehicles and the expanding scale of future humanoid robot deployments." For USA Rare Earth, the analyst believes that the company has built a unique asset portfolio across the entire industry value chain, along with a strong management team, positioning it to become a leading player in the long-term trend of driving the rare earth permanent magnet supply chain away from dependence on China. The analyst noted that with the acquisition of Serra Verde expected to be completed in the third quarter, the integration of the LCM business progressing, and the first batch of magnet products scheduled to begin shipping to customers in the second half of 2026, USA Rare Earth is "on the eve of a large-scale capacity ramp-up." He pointed out that as these projects gradually come to fruition, USA Rare Earth is expected to build a more complete domestic rare earth and magnet supply chain in the U.S. and benefit from the trend of global supply chain restructuring ### Related Stocks - [USAR.US](https://longbridge.com/en/quote/USAR.US.md) - [USARW.US](https://longbridge.com/en/quote/USARW.US.md) - [MP.US](https://longbridge.com/en/quote/MP.US.md) - [MPG.US](https://longbridge.com/en/quote/MPG.US.md) - [MPL.US](https://longbridge.com/en/quote/MPL.US.md) ## Related News & Research - [MP Materials Has Early Mover Advantage In 'Multi-Year Rare Earths Investment Cycle,' Says Bullish Analyst](https://longbridge.com/en/news/288305720.md) - [MP Materials vs. USA Rare Earth: Which Rare-Earth Stock Is a Better Buy in 2026?](https://longbridge.com/en/news/288276297.md) - [USAR stock rises after unveiling $1.2B rare earth manufacturing hub](https://longbridge.com/en/news/288455520.md) - [USA Rare Earth Expands Commitment to France with Plans for Additional Investment in the French Rare Earth Ecosystem | USAR Stock News](https://longbridge.com/en/news/288227537.md) - [If You Buy USA Rare Earth Right Now, Could It Make You a Millionaire?](https://longbridge.com/en/news/287655691.md)