UPDATE: J.P. Morgan Lowering Price Target on MolyCorp
J.P. Morgan is out with a research report on MolyCorp (NYSE: MCP) and it is lowering its price target to $57 from $66, but is keeping its Neutral rating on shares.
In a note to clients, J.P. Morgan writes, "We are lowering our PT to $57 from $66 to reflect our lower rare earth price forecasts as well as our assumption that MCP only ramps to 30k tonnes of capacity in 2014 (not the full 40k tonnes that Phase 2 could enable). While prices appear to have stabilized after significant declines since the summer peaks, they could still feel additional pressure through year end before China's invoice system potentially starts. Additionally, we remain concerned about what will happen to prices as ramping supplies from MCP and Lynas hit up against a ROW demand profile that has shown little growth over the past five years (see Figure 7 on page 4)."
Shares of MCP are down $2.42 to $36.28 in pre-market trading.
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