This Rare Earths Stock Gained 108% in 2025. Should You Keep Buying It for the New Year?

Neo’s recent fundamental moves help explain why the market is suddenly willing to pay up for its rare earth story. The company is putting real capital behind Europe’s push to reduce dependence on Chinese supply, with a heavy rare earth pilot line at its Silmet facility now nearing completion and commissioning expected in early 2026.

This pilot line is designed to produce dysprosium and terbium, two critical inputs for high‑performance permanent magnets that need to operate reliably at high temperatures in EV motors and other demanding applications.

The company has already completed the sale of a majority equity interest in certain Chinese rare earth separation assets, which further tilts its footprint toward Western‑aligned supply chains and frees up resources to backstop this European build‑out.​

Neo has also moved from plans to a physical footprint. The company has held the grand opening of a new, state‑of‑the‑art permanent magnet manufacturing facility in Estonia. That inauguration is positioned as a milestone in building a resilient, independent European base for critical rare earth magnets. Those magnets are tied directly to electric vehicles, wind energy, robotics, and the broader energy transition.

NOPMF is also tightening its commercial ties with one of the most important customers in the region’s industrial landscape. The company recently announced an extension of its strategic partnership for high‑performance magnets with Robert Bosch GmbH, one of the world’s leading automotive and industrial technology groups.

This agreement keeps Neo embedded in Bosch’s long‑term plans for advanced magnet applications, from electrified powertrains to precision industrial systems, and helps underpin volumes for the new European magnet facility as it ramps up.

Analysts are not treating Neo’s 100%+ run in 2025 as a one‑off pop. They are already looking ahead to the next catalyst, with the next earnings release scheduled for March 17, 2026, covering the crucial holiday season quarter that will close out fiscal 2025. For the current quarter ending this December, the average EPS estimate sits at $0.10, a big swing from the prior year’s -$0.12, which translates into an expected YoY growth rate of about 183%.

For the next quarter, in March, the Street is looking for EPS of $0.15 versus $0.08 a year earlier. That implies another hefty jump, with estimated growth of roughly +87.50% as Neo’s higher‑margin rare earth and magnet volumes ramp.​

The full‑year numbers tell an even sharper inflection story, as for fiscal December 2025, the average EPS estimate sits at $0.44 compared with just $0.05 in the prior year. That works out to a projected growth rate of about 780%.​

The rating and target picture back that up, even if coverage is still thin, with a consensus “Moderate Buy” on NOPMF based on three analysts. Its average price target comes in at $19.50, which, against the recent price of about $11.50, implies roughly 70% upside from here.

If the goal is long-term exposure to the West’s push to build non‑Chinese rare earth and magnet capacity, NOPMF still looks like a reasonable “keep buying,” but only in small, disciplined increments after a 105%+ year. Most likely, shares will drift higher into 2026 if results continue to improve, but expect pullbacks and choppy trading after such a considerable run. A clean break back above recent levels would need fresh proof in upcoming quarters, so averaging in (not chasing spikes) is the safer way to stay involved.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com