Piper Jaffray Upgrades Molycorp To Overweight

According to Piper Jaffray, Molycorp

is upgraded to Overweight. Piper Jaffray said that it is upgrading shares of rare earth miner & processor Molycorp to Overweight from Neutral following the stock's ~40% correction since early May. “We believe the pullback overly discounts the risk that rare earth prices will fall precipitously – which we believe is unlikely to occur over the next 6-12 months. We maintain our $73 price target and view continued restrictive policy actions from China, positive 2Q results, and progress on the funded capital project as potential catalysts for the stock. Less conservative pricing assumptions in our model could present upside north of $100/share.” Molycorp closed on Friday at $48.93.