Dahlman Rose Remains Bullish on Molycorp (MCP) Despite Miss, Long-Term Still Strong
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Rating Summary:
2 Buy, 6 Hold, 2 Sell
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Up: 12 | Down: 23 | New: 22
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Dahlman Rose is reiterating its Buy rating and $70 price target on shares of Molycorp (NYSE: MCP) following the release of its third quarter results.
The company announced earnings for the quarter which were below what the Street and firm was forecasting. The firm notes that downside was due to lower than expected volumes. Management at MCP blamed the miss on sequencing issues at Mountain Pass and a shipment of concentrate to its European operation for processing.
Construction on the Mountain Pass mine remains on track to be completed in the first quarter and the firm continues to believe the mine will result in higher earnings and cash flow for the company.
An analyst at Dahlman Rose comments, "While quarterly earnings are an important benchmark for every company, it is progress towards the completion of this project which will ultimately lead to a re-rating in the valuation for the shares."
The firm is initiating its fourth quarter earnings estimate at $0.35 and is reaffirming its FY11 and FY12 EPS estimates of $1.46 and $3.00.
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 $38.70 yesterday.
The company announced earnings for the quarter which were below what the Street and firm was forecasting. The firm notes that downside was due to lower than expected volumes. Management at MCP blamed the miss on sequencing issues at Mountain Pass and a shipment of concentrate to its European operation for processing.
Construction on the Mountain Pass mine remains on track to be completed in the first quarter and the firm continues to believe the mine will result in higher earnings and cash flow for the company.
An analyst at Dahlman Rose comments, "While quarterly earnings are an important benchmark for every company, it is progress towards the completion of this project which will ultimately lead to a re-rating in the valuation for the shares."
The firm is initiating its fourth quarter earnings estimate at $0.35 and is reaffirming its FY11 and FY12 EPS estimates of $1.46 and $3.00.
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 $38.70 yesterday.
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