Morgan Stanley Positive on Molycorp
Morgan Stanley has published a research report on Molycorp (NYSE: MCP ) making positive comments on the company.
In the report, Morgan Stanley writes, "Average domestic Chinese REO prices have increased to $26.35/kg from $23.94 on Tuesday, based on Metal Pages data. Average price is based on Mountain Pass's product mix. Chinese domestic Neodymium oxide price is up 20% from Tuesday, praseodymium up 11%, while lanthanum and cerium were flat. Heavy rare earth Dysprosium is up 14% and Europium up 19%. Export average REO prices are currently at $46.50, still unchanged from Tuesday. We continue to think REO prices have reached a level that will drive demand. We expect a seasonal pickup in demand to help stabilize prices."
Morgan Stanley currently has no rating/PT on Molycorp, which is currently trading UP $1.02 from yesterday's $31.53 closing price.
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