UPDATE: JP Morgan Upgrades Molycorp to Neutral on Capital Raise
JP Morgan upgraded Molycorp (NYSE: MCP) from Underweight to Neutral and raised the price target from $5.00 to $6.00.
JP Morgan noted, "While risks remain in the form of even lower rare earth prices and completing Mt. Pass on-time and on-budget and significantly reducing its operating costs, we move from UW as the greatest risk we previously saw for the stock (MCP having to raise significant amounts of capital) has now passed. While we can't rule out MCP having to raise additional cash, especially in the currently weak rare earth price environment, we do believe it has sufficient capital to last it for most of 2013 assuming our Mt. Pass ramp and earnings recovery at heritage Neo Materials."
Molycorp closed at $7.57 on Wednesday.
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