UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on Thompson Creek Metals
In a report published Wednesday, J.P. Morgan & Co. reiterated its Overweight rating on Thompson Creek Metals (NYSE: TC), but lowered its price target from $8.00 to $6.50.
J.P. Morgan noted, “We are lowering our estimates and price target (to $6.50 from $8.00) for TC to reflect our lower moly price forecasts, lower production/higher cost estimates at Endako, and higher projected cash operating costs for Mt. Milligan. With the stock trading at $2.39, we think it is discounting metal price levels and capital raises/operational issues at Mt. Milligan that are unlikely to occur. While we think investors will continue to take a cautious stance towards TC's stock until they gain more confidence that Mt. Milligan will be completed on-time and on-budget, we also believe TC's current stock price is not accurately reflecting the significant earnings growth and more diversified asset base the Mt. Milligan mine will create for the company when it comes online in late 2013.”
Thompson Creek Metals closed on Tuesday at $2.39.
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Tags: J.P. Morgan & Co.