UPDATE: Piper Jaffray Reduces PT to $8 on Molycorp on Liquidity and Regulatory Concerns
Piper Jaffray reiterated its Neutral rating on Molycorp (NYSE: MCP) but reduced its price target from $13 to $8.
Piper Jaffray commented, "We remain skeptical on MCP's output at Mountain Pass and have slashed our CY13 estimates again to 8,000MT (previously 14,250MT). With $436m in cash on hand and capex outlay of $475m over the next 3 quarters, we remain concerned about Molycorp's liquidity needs. Finally, the company has been subjected to a inquiry by SEC regarding its public disclosures and consistency. We are reducing our PT to $8 based on 1x CY13 sales of $975m. Reiterate Neutral with a negative bias."
Molycorp closed at $7.50 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.