Dahlman Rose Reiterates a 'Buy' on Molycorp (MCP); Adjusting Estimates for Short-Term, Still Optimistic Long-Term

May 4, 2012 1:40 PM EDT
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Dahlman Rose reiterates a 'Buy' on Molycorp (NYSE: MCP) price target of $50.00.

Analyst, Anthony Young, said, "We continue to believe that there are several catalysts that should help to push MCP shares higher over the remainder of the year. The most significant of these catalysts will be the Mountain Pass mine achieving commercial production at the end of 3Q12, additionally we believe that the announcement of further off-take agreements and the closure of the Neo Materials deal could also serve as catalysts."

However, Young lowers Q1 EPS estimate from $0.05 to $0.00, FY12 from $2.15 to $1.25 and FY13 from $4.15 to $3.00. He cites lower than anticipated rare earth prices during 1Q12, but maintains 'Buy' on longer-term outlook on shares.

For an analyst ratings summary and ratings history on Molycorp click here. For more ratings news on Molycorp click here.

Shares of Molycorp closed at $26.77 yesterday.

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