UPDATE: JP Morgan Downgrades Molycorp to Underweight on Funding Challenges

JP Morgan cut its rating on Molycorp (NYSE: MCP) from Neutral to Underweight and lowered its price target from $19.50 to $11.50.

JP Morgan said, "We are taking these actions to reflect new funding risks in addition to the significant rare earth market risks we've previously discussed. MCP announced that it is potentially facing a funding shortfall and will look to secure additional financing. While Mt. Pass remains on-budget and on-time (though exhibiting cost pressures), MCP still has to complete the project and deliver a commercial product to its customers."

Molycorp closed at $16.07 on Thursday.

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