** Shares of rare earth and critical battery elements refining firm American Resources AREC.O rise ~7% at $4.24

** William Blair initiates coverage on AREC with "outperform" rating

** "We could see further significant Department of Defense funding and a government stake," - brokerage

** Brokerage believes that the stock could trade high, supported by peers Lithium Americas LAC.TO and MP Materials MP.N

** Brokerage expects company to grow its sales from $30 million in 2026 to $275 million by 2030

** 2 brokerages rate the stock "buy", median PT is $5.5 - data compiled by LSEG

** Including session's moves, stock up 318.8% YTD

(Reporting by Varun Sahay)

((Varun.sahay@thomsonreuters.com))