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Morgan Stanley Reiterates Equal-Weight Rating on Molycorp

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In a report published Friday, Morgan Stanley reiterated its Equal-Weight rating on Molycorp (NYSE: MCP).

Morgan Stanley noted, “No update on ramp up at Project Phoenix suggests costs could remain high in 4Q while REO prices declined ~26% to $24/kg. As demand remains weak, we see near-term risk to margins until production rate moves above ~15ktpy. Lowering 4Q EPS estimate to $(0.20). 4Q rebound in earnings looks unlikely. Lack of an update about ramp up at Project Phoenix raises the risk of costs remaining high in 4Q. Additionally, with average REO prices 19% below 3Q on one month lag, we do not expect 4Q earnings to rebound.”

Molycorp closed on Thursday at $9.30.

Latest Ratings for MCP

Jan 2015DA DavidsonDowngradesBuyNeutral
Aug 2014Euro Pacific CapitalDowngradesHoldSell
Aug 2014Euro Pacific CapitalUpgradesSellHold

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Posted-In: Morgan StanleyAnalyst Color Reiteration Analyst Ratings


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