UPDATE: D.A. Davidson Downgrades Molycorp On Bankruptcy Reports

In a report published Friday, D.A. Davidson analyst Avinash Kant downgraded the rating on Molycorp Inc (NYSE: MCP) from Buy to Neutral, and lowered the price target from $4.00 to $0.38.

In the report, D.A. Davidson noted, “Bloomberg reported (on January 22nd) that Jones Day, MCP's legal counsel, has changed to a restructuring role in anticipation of a potential bankruptcy. News on the stock has been quite negative lately as, on December 30, 2014, the New York Stock Exchange notified MCP that its common stock was not in compliance with the continued listing standard in place, which requires a minimum average closing price of above $1.00 for a period of thirty consecutive days.”

Molycorp closed on Thursday at $0.37.