Dahlman Rose Maintains a 'Buy' on Molycorp (MCP); Lowering PT on Dilutive Transaction
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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 maintains a 'Buy' on Molycorp (NYSE: MCP) price target lowered from $70 to $50.
Analyst, Anthony Young, said, "Molymet has agreed to purchase approximately 12.5 million shares of Molycorp for a total consideration of $390 million. These shares will be dilutive to current shareholders...Based upon the dilution introduced with this transaction, we are adjusting our NAV analysis. In addition to the 13% dilution, we believe an investment in Molycorp shares contains significantly increased risk, given the company's stated desire to participate in M&A activity. Thus we discount our NAV by 25%, to arrive at our price target of $50."
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 $29.69 yesterday.
Analyst, Anthony Young, said, "Molymet has agreed to purchase approximately 12.5 million shares of Molycorp for a total consideration of $390 million. These shares will be dilutive to current shareholders...Based upon the dilution introduced with this transaction, we are adjusting our NAV analysis. In addition to the 13% dilution, we believe an investment in Molycorp shares contains significantly increased risk, given the company's stated desire to participate in M&A activity. Thus we discount our NAV by 25%, to arrive at our price target of $50."
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 $29.69 yesterday.
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