Dahlman Rose Comments on Molycorp (MCP) Following Q2 Results, Sees Rare Eart Prices Falling by at Least 70%
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Rating Summary:
2 Buy, 6 Hold, 2 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Dahlman Rose is reiterating its Buy rating and $120 price target on shares of Molycorp (NYSE: MCP) following the release of its Q2 results.
The company reported a Q2 EPS of $0.52, well ahead of the firms estimate of $0.35 and the Street's estimate of $0.40. The firm notes that a larger portion of the upside was due to larger than expected rare earth price realization.
Management noted that all of its production is fully allocated for Phase 1 of the Mountain Pass project and indicated that a portion of production from Phase 2 has been allocated. They also believe that they will have 75 percent of their production under firm contracts by year end.
For Q2 Dahlman Rose estimates EPS of $0.75. For 2011 and 2012, the firm forecasts EPS of $2.00 and $5.70.
The firm believes that rare earth prices will decrease by at least 70 percent from the current spot level over the medium to long-term.
For more ratings news on Molycorp click here and for the rating history of Molycorp click here.
Shares of Molycorp closed at $54.14 yesterday.
The company reported a Q2 EPS of $0.52, well ahead of the firms estimate of $0.35 and the Street's estimate of $0.40. The firm notes that a larger portion of the upside was due to larger than expected rare earth price realization.
Management noted that all of its production is fully allocated for Phase 1 of the Mountain Pass project and indicated that a portion of production from Phase 2 has been allocated. They also believe that they will have 75 percent of their production under firm contracts by year end.
For Q2 Dahlman Rose estimates EPS of $0.75. For 2011 and 2012, the firm forecasts EPS of $2.00 and $5.70.
The firm believes that rare earth prices will decrease by at least 70 percent from the current spot level over the medium to long-term.
For more ratings news on Molycorp click here and for the rating history of Molycorp click here.
Shares of Molycorp closed at $54.14 yesterday.
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