Dahlman Rose Lowers Estimates on Molycorp (MCP) On Falling Rare Earch Prices
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Price: $0.36 --0%
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dahlman Rose lowered estiamtes on Molycorp (NYSE: MCP) but maintained their Buy rating and price target of $120.
2011 EPS goes from $2.00 to $1.70 and 2012 from $5.70 to $4.90. The firm cited softness in rare earth prices.
On rare earth prices, the firm notes that Lanthanum and certain prices have dropped 33% in the last two months. While the pace of declines has abated in the last two weeks, the firm said trade sources continue to indicate that demand remains soft. Despite the drop however, prices remain approximately 250% above their long-term price expectations.
After a recent meeting with management, Dahlman Rose notes that construction at Mountain Pass remains on track and on budget, with completion expected in mid-July, 2012. This is the single most important factor, that will ultimately drive the stock higher, the firm notes.
For more ratings news on Molycorp click here and for the rating history of Molycorp click here.
Shares of Molycorp closed at $54.11 yesterday.
2011 EPS goes from $2.00 to $1.70 and 2012 from $5.70 to $4.90. The firm cited softness in rare earth prices.
On rare earth prices, the firm notes that Lanthanum and certain prices have dropped 33% in the last two months. While the pace of declines has abated in the last two weeks, the firm said trade sources continue to indicate that demand remains soft. Despite the drop however, prices remain approximately 250% above their long-term price expectations.
After a recent meeting with management, Dahlman Rose notes that construction at Mountain Pass remains on track and on budget, with completion expected in mid-July, 2012. This is the single most important factor, that will ultimately drive the stock higher, the firm notes.
For more ratings news on Molycorp click here and for the rating history of Molycorp click here.
Shares of Molycorp closed at $54.11 yesterday.
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