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BMO Capital Initiates MP Materials (MP) With a Hold Rating

By Talha Qureshi | October 17, 2025, 9:26 AM

​MP Materials Corp. (NYSE:MP) is one of the Hottest Large-Cap Stocks to Buy Now. On October 8, Raj Ray from BMO Capital initiated a Hold rating on MP Materials Corp. (NYSE:MP) with an associated price target of $76.

​MP Materials Corp. (NYSE:MP) has established itself as a leader in the US rare earth industry with its 10-year strategic partnership with the Department of Defense, said the analyst in a research note. He added that the partnership provides the company with financial stability, guarantees EBITDA margins, and ensures a predictable earnings stream.

However, Ray expressed his concern, noting that the market has seemed to already price in the company’s future earnings potential, thereby leading to a fair valuation and a hold rating.

​In addition, Ray noted that although the deal provides the company with a significant competitive edge and also reduces commodity price risks, the focus now shifts to the management’s ability to deliver. He also added that the significant increase in stock price on a year-to-date basis suggests that MP Materials Corp. (NYSE:MP) would need further catalysts to drive the stock price higher.

​MP Materials Corp. (NYSE:MP) deals in producing specialty materials essential for electrification products and other advanced technologies.

While we acknowledge the potential of MP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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