USA Rare Earth, Inc. (NASDAQ:USAR) is among the 10 best meme stocks to buy now. Its shares have returned over 60% year-to-date, with a significant surge in late January after news about the U.S. government backing a $1.6 billion funding.
On January 26, the company announced that it had received a letter of intent for a debt-and-equity package to develop a rare-earth mine in Texas and a magnet-manufacturing facility to boost production of critical materials for the defense and tech sectors, while reducing reliance on China for supply.
Following the development, Roth Capital on January 27 lifted its price target on USA Rare Earth, Inc. (NASDAQ:USAR) to $35 from $25, while maintaining a Buy rating. In a research note to investors, analyst Suji Desilva said the funding would help strengthen the company’s prospects for developing an end-to-end value chain for rare earth materials in the country.
Later on January 30, Cantor Fitzgerald’s Derek Soderberg raised the firm’s price target on the stock to $35 from $28 with an Overweight rating. The analyst noted that magnet production had the potential to generate $1.2 billion in EBITDA by 2030, provided key milestones are achieved.
As of the close of business on February 12, the stock is a Strong Buy with an average share price upside of nearly 94%.
USA Rare Earth, Inc. (NASDAQ:USAR) is engaged in the mining and supply of rare earths and other critical materials.
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