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MP Materials Slips 9% as Profit-Taking Halts Four-Day Rally

A recent surge tied to China export curbs faces valuation pushback from a new Hold rating at BMO Capital.

Overview

  • Shares fell 8.92% to $89.85, breaking a four-session winning streak.
  • The stock had climbed as much as 42% over the prior four trading days and was up 34% month to date before the pullback.
  • Investors linked the advance to U.S.–China trade tensions and newly announced Chinese restrictions on rare‑earth exports.
  • MP Materials earlier secured a Department of Defense partnership involving about a 15% stake for $400 million through preferred shares and 10‑year warrants exercisable at $30.03.
  • On October 8, BMO Capital’s Raj Ray initiated coverage at Hold with a $76 price target, citing cash‑flow stability from the DoD deal but warning that much of the upside appears priced in and execution will be key.