-- (Updated to include Wedbush commentary)
Wedbush initiated coverage on USA Rare Earth (USAR) with an outperform rating and a $29 price target.
The brokerage highlighted the company's Round Top deposit in West Texas, noting that around 72% of its total rare earth oxide content consists of heavy rare earth elements, effectively unique among deposits of this scale outside China, analysts Dan Ives and Sam Brandeis wrote in a Monday note.
Rare earth magnets are critical inputs across defense, EVs, semiconductors, and physical artificial intelligence infrastructure, such as compute, robotics, and autonomous, the analysts added.
These end markets represent a rapidly growing addressable market and an area where domestic customers are actively seeking to reduce reliance on China, Ives and Brandeis said.
USA Rare Earth has an average rating of buy and mean price target of $32.25, according to analysts polled by FactSet.
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