JP Morgan Lowers Molycorp PT on Neo Materials Acquisition
J.P. Morgan lowered its Molycorp (NYSE: MCP) price target from $23 to $19.50 in a research report published Friday. J.P. Morgan has a Neutral rating on the company.
In the report, J.P. Morgan stated, "While we ultimately think it makes sense for MCP to be in China as a large portion of rare earth supply/demand will likely remain dominated by China, we continue to be worried that the price of the acquisition could be too high if the whole supply chain becomes oversupplied and rare earth prices continue to fall as we are estimating."
Shares of Molycorp closed Friday at $21.50, down 2.54% from Thursday's market close. At the time of posting, shares were trading in after-hours trading at $21.38.
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