MP Materials Stock Drops Following Grizzly Research Short Report
Investing.com
Published Oct 26, 2021 11:57AM ET
Updated Oct 26, 2021 03:55PM ET
By Sam Boughedda
Investing.com — Mp Materials Corp (NYSE:MP) shares fell more than 13% on Tuesday after short seller Grizzly Research said it sees a potential 60% downside in the stock.
MP Materials became a public company back in November 2020 through a reverse SPAC merger.
Grizzly described the stock as a "low-quality deal that will cost investors dearly." In addition, Grizzly claimed in the report that the company can be traced back to the Chinese government despite the company selling itself as "the largest rare earth producer in the western world."
MP Materials responded Tuesday afternoon in a series of tweets. "Grizzly’s “report” gets the facts & analysis wrong and displays a fundamental misunderstanding of our business, industry & performance," said the first tweet.
Before the short report, JPMorgan analyst Tyler Langton said he sees "positive tailwinds" for MP Materials ahead of its Q3 earnings report on November 4.
The analyst said he expects solid earnings with no surprises and kept an overweight rating on the shares with a $45 price target.
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