UPDATE: J.P. Morgan Raises PT on Molycorp to $66 (MCP)

J.P. Morgan is out with its report today on Molycorp MCP, raising its PT from $65 to $66.

In a note to clients, J.P. Morgan writes, "We continue to believe MCP's stock price should start to catch up to the recent surge in rare earth prices, which are up roughly 45% since mid-February while MCP's stock price has largely traded sideways. In the near term, rare earth prices should continue to be supported by consumers' scrambling for supply, reductions in illegal mining, and producers holding back on exports and opting for price over volumes. While the market is clearly concerned new supply will eventually depress prices, we also note that we are already assuming a 66% reduction from current spot rare earth prices in
our model used to derive our price target of $66."

At the time of posting, shares of MCP were trading pre-market at $48.93, up 0.64% from Wednesday's close.