Jefferies upgrades rare earth miner Ramaco to 'buy' after slide in last 3 months

Investment bank Jefferies has upgraded to "buy" its rating on shares of small-cap company Ramaco Resources, which is developing a rare earth metals deposit. China remains the dominant player in the market, and strained relations between China and the U.S. over recent months have created opportunities for companies such as Ramaco, Barron's notes.

Jefferies analyst Christopher LaFemina raised his rating on Ramaco shares to “buy” from “hold” but cut his target price by 9% to $30 per share, Barron’s reports.

The new target price implies upside of nearly 35% versus the stock’s closing level on Tuesday, January 20. On that day, Ramaco shares rose 6.8% to $22.30 per share.

A rating upgrade accompanied by a target price downgrade reflects how industry conditions have evolved in recent months, Barron’s noted. After a sharp rally, Ramaco shares have fallen about 59% from their October 14 peak of $54.60 per share.

The stock had previously surged amid China’s threats to restrict exports of rare earth minerals, which account for roughly 85% of global processing capacity, Barron’s wrote in a previous article. Those threats prompted investors to search for alternative suppliers, creating opportunities for companies such as Ramaco.

Ramaco Resources is primarily engaged in producing coal for the U.S. steel industry. In 2023, the company discovered that its Brook Mine in Wyoming sits atop a large deposit of rare earth elements, according to CNBC. At present, the U.S. has only one operating rare earth mining and processing facility, owned by MP Materials. Ramaco’s Brook Mine would become the first new rare earth mine in the U.S. in more than seven decades, CNBC said.

Production of rare earth materials at the Wyoming site is expected to begin later this year, Barron’s adds.

Wall Street analysts are broadly constructive on the outlook for Ramaco shares. Seven analysts rate the stock “buy,” one rates it “hold,” and one “sell,” according to MarketWatch data. The average target price is $36.40 per share, implying upside of more than 63% versus the last closing price.

Since autumn 2025, at least four investment banks have initiated coverage of the small-cap name with “buy” ratings, according to Yahoo Finance data.

Among them, Baird's Ben Kallo, who set a $63 per share target price in October 2025, said he expects Ramaco to receive support from the U.S. government amid ongoing trade tensions between the U.S. and China.