DA Davidson's Avinash Kant initiated coverage on Molycorp 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.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in