This analyst just raised his price target on USA Rare Earth

Roth Capital Partners analyst Suji Desilva says USA Rare Earth (USA Rare Earth  Stock Quote, Chart, News, Analysts, Financials NASDAQ:USAR) is gaining visibility into its forward opportunity as customer interest in rare earth magnet supply continues to build.

In a June 1 update, Desilva maintained his “Buy” rating on Oklahoma-based USA Rare Earth and raised his target price to $40.00 from $30.00

“We believe USAR is making progress with its magnet manufacturing and showing greater signs of the timeline for mining operations progressing as expected,” Desilva said. “We believe customer interest in securing rare earth magnet supply is expanding steadily.”

Desilva said USA Rare Earth remains on track toward initial rare earth magnet shipments and revenue, while also making progress in commercializing its mining opportunities in Texas and South America.

The analyst said the company is benefiting from U.S. government efforts to advance domestic materials capability in support of defence and energy applications.

“We are encouraged by USAR’s deepening U.S. government traction, with a recent update from the Department of Energy updating funding commitment to the company in support of pilot scale rare earth element separation processes,” he said.

Desilva noted that Roth will host USA Rare Earth management at its London conference from June 16 to 18.

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