Goldman Maintains Neutral Rating on Molycorp (MCP)

March 15, 2013 10:16 AM EDT
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Price: $0.36 --0%

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    4 Buy, 7 Hold, 2 Sell

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Goldman Sachs today maintained a Neutral rating on Molycorp (NYSE: MCP) with a price target of $6.00. The company reported Q4 results yesterday. Commenting on developments, analysts at Goldman Sachs said they think supply and demand in rare earths will be challenged this year with new supply from both Molycorp and Lynas added to pricing pressure. Despite this, they noted positive developments at Molycorp.

"We view Molycorp's targeted cash production costs of $6-$7/kg by YE2013 as a sign of operational confidence in the near-to-medium term cost roadmap despite recent liquidity and management related turmoil," said analyst Brian Lee. "Additionally, the company's first major distribution agreement for its proprietary SorbX solution with Univar USA appears to position Molycorp to sell out nearly its entire Phase I cerium production (9,300mt) by 2015 and should help to quell some investor concerns around excess cerium capacity."

For an analyst ratings summary and ratings history on Molycorp (NYSE: MCP) click here. For more ratings news on Molycorp click here.

Shares of Molycorp closed at $5.99 yesterday.

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