Piper Jaffray Maintains Overweight on Molycorp
Piper Jaffray is out with its report today on Molycorp (NYSE: MCP), reiterating Overweight.
In its report, Piper Jaffray writes, "In reporting 2Q results that came in ahead of expectations, Molycorp upped its 2011 production guidance modestly and indicated that the Mountain Pass, CA facility remains on schedule and on budget for mid-2012 mechanical completion. We are encouraged by the rare earth price realization in 2Q and believe gross margins will improve in upcoming quarters, lifting 2H11 EPS. Rare earth prices remain firm outside China and production consolidation within China will likely tighten exports – both of which are positives for MCP. Reiterate Overweight rating and $77 price target."
Shares of MCP closed Thursday at $54.14, up 5.02% from Wednesday's close.
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