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USA Rare Earth Seesaws as Analyst Upgrade Offsets Price‑Guarantee Jitters

Investors are weighing federal financing against the lack of government price floors.

Overview

  • Shares fell Thursday after a Reuters report said the government would not extend minimum‑price guarantees to new critical minerals projects such as USA Rare Earth.
  • The stock rose about 5.8% intraday Friday after Cantor Fitzgerald lifted its price target to $35, citing strengthened liquidity.
  • Cantor estimates roughly $3.5 billion of available capital when combining existing cash, a $1.3 billion CHIPS loan, a $277 million federal equity investment, and a $1.5 billion PIPE.
  • Earlier in the week, USA Rare Earth initially jumped on a Commerce Department commitment that included a CHIPS Program loan and equity stake, before reversing on policy concerns.
  • Other analysts raised targets as well, with Canaccord moving to $33 and Benchmark’s Subash Chandra to $45, even as forecasts call for a roughly $252 million loss this year.