Analyst Says Molycorp (MCP), Rare Element (REE) the Only Real Players in Rare Earth Group
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Price: $0.36 --0%
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 18
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 18
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Shares of Molycorp (NYSE: MCP) and Rare Element Resources (AMEX: REE) are holding up relatively well Friday morning despite downgrades on peers Avalon (AMEX: AVL) and Hudson Resources (OTC: HUDRF) from Dahlman Rose earlier. While shares of Avalon are down more than 5.5 percent at last check, Molycorp shares are down less than 2 percent and Rare Element shares are down just over 1 percent.
Amid rare earth prices which Dahlman Rose believes will be range bound for at least the next 12-18 months, the firm said it is narrowing its focus "to the two companies that we believe have the highest likelihood of completing their projects and generating cash flows in the current market environment, Molycorp and Rare Element Resources." Dahlman's downgrades on Avalon and Hudson Resources, then, were predicated on difficulty for these companies to achieve inherent project values until rare earth prices stabilize.
The firm said investors will be rewarded for betting "in companies with the clearest paths toward production and cash flow."
Dahlman Rose maintains Buy ratings on both Molycorp and Rare Element Resources. The firm has a $55 price target on Molycorp and a $9 target on shares of Rare Element Resources.
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Amid rare earth prices which Dahlman Rose believes will be range bound for at least the next 12-18 months, the firm said it is narrowing its focus "to the two companies that we believe have the highest likelihood of completing their projects and generating cash flows in the current market environment, Molycorp and Rare Element Resources." Dahlman's downgrades on Avalon and Hudson Resources, then, were predicated on difficulty for these companies to achieve inherent project values until rare earth prices stabilize.
The firm said investors will be rewarded for betting "in companies with the clearest paths toward production and cash flow."
Dahlman Rose maintains Buy ratings on both Molycorp and Rare Element Resources. The firm has a $55 price target on Molycorp and a $9 target on shares of Rare Element Resources.
Check out our Ratings Insider portal to get the most comprehensive and up-to-date analyst coverage on the Street.
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