USA Rare Earth Analyst Cuts Price Target After Q4 Print

USA Rare Earth Inc (NASDAQ:USAR) reported fourth-quarter revenue ahead of expectations. Still, there is a downside to profitability, according to Canaccord Genuity analyst George Gianarikas.

The USA Rare Earth Analyst: Gianarikas maintained a Buy rating, and lowered the price target from $33 to $29.

The USA Rare Earth Thesis: The company reported revenues of $1.6 million. It exceeded the consensus expectation of zero sales, Gianarikas said in the note.

Check out other analyst stock ratings.

USA Rare Earth reported a net loss of around $26.4 million or 19 cents per share. That’s well below expectations for a net loss of $22.4 million and 17 cents per share, he added.

The analyst stated that the company mentioned the following milestones for 2026:

• Signing the Definitive Funding Agreement and Definitive Funding Award with the US Government in April
• Commissioning the hydrometallurgical demonstration facility in Colorado in the second quarter
• Completing the Round Top Preliminary Feasibility Study by the end of the third quarter
• Initiating Round Top Definitive Feasibility Study (DFS) in the fourth quarter
• Reaching 600 MTPA of run-rate magnet manufacturing capacity at the Stillwater Facility and 3,000 MTPA of run-rate metal making and alloy capacity at LCM in the fourth quarter

"Our $29 price target better reflects anticipated dilution from US government funding and PIPE proceeds (announced in January) as well as dilution associated with the recently announced TMRC acquisition," he further wrote.

USAR Price Action: Shares of USA Rare Earth had risen by 2.74% to $14.62 at the time of publication on Tuesday.

Image: Shutterstock