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UPDATE: DA Davidson Starts Molycorp at Buy, $7 Price Target

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DA Davidson's Avinash Kant initiated coverage on Molycorp (NYSE: MCP) with a Buy rating and $7 price target. The analyst believes Molycorp is "poised to become a leading player in the rare earth market."

Kant pointed out the company has recently committed around $1.5 billion to streamline its vertically-integrated manufacturing process, also noting these "materials are critical enablers in several emerging high-growth applications such as semiconductors, hybrid and electric vehicles, wind power turbines, fiber optics, lasers, global positioning systems, and guidance & control devices."

"...the implementation of some unique recycling technologies, the use of lower energy cost processes, and the resource advantage from Mountain Pass should help Molycorp become the low-cost supplier in the industry," according to the DA Davidson analyst.

With Molycorp shares down very modestly to $4.91 at last check, Kant's new price target implies potential upside of about 43 percent.

Latest Ratings for MCP

DateFirmActionFromTo
Aug 2014Euro PacificDowngradesHoldSell
Aug 2014Euro PacificUpgradesSellHold
May 2014Morgan StanleyDowngradesUnderweight

View More Analyst Ratings for MCP
View the Latest Analyst Ratings

Posted-In: Analyst Color Price Target Initiation Analyst Ratings

 

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