Al Root

Shares of aspiring rare earth miner Ramaco Resources dropped early Tuesday, despite a Wall Street upgrade to Buy.

Jefferies analyst Christopher LaFemina upgraded Ramaco shares to Buy from Hold. His price target went down by $3 to $30, according to FactSet.

An upgrade with a reduced price target tells investors how things have been going lately. Coming into Tuesday trading, Ramaco stock was down 56% over the past three months, following a spike driven by U.S.-Chinese trade tensions. China dominates the market, with an estimated 85% of global refining capacity. Its threats to restrict exports of rare earth metals, which are used in countless high-tech products, have roiled markets for months.

The threats have also created opportunities for companies such as Ramaco. It doesn't yet produce rare-earth materials. It produces coal for metallurgical applications. Ramaco, however, is developing a rare earth mine in Wyoming, with production of rare earth materials slated to begin later this year.

Ramaco stock was down 3.6% in premarket trading Tuesday at $20.15.

The upgrade isn't the reason for the move. Stocks tumbled as investors worried about President Donald Trump's plan to impose tariffs on NATO members unless they allow the U.S. to acquire Greenland. S&P 500 and Dow Jones Industrial Average futures were down 1.5% and 1.6%, respectively. The U.S. dollar index was down 0.9%. Gold rose 3% to more than $4,700 an ounce.

Shares of other rare earth companies were lower, too. USA Rare Earth stock was down 0.9% at $17.53. Coming into Tuesday trading, its shares were down 44% over the past three months. Shares of MP Materials, the largest rare earth miner in the Western Hemisphere, were down 0.7% at $68.50. Coming into Tuesday trading, its shares were down 17% over the past three months.

With the upgrade, 78% of analysts covering Ramaco stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Ramaco stock is about $36 a share.

Rare earth stocks remain popular on Wall Street. All of the analysts that cover USA Rare Earth and MP rate shares Buy.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 20, 2026 07:37 ET (12:37 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.