Molycorp, Inc. (NYSE: MCP) is seeing its shares under pressure today on an analyst downgrade after last week’s earnings report. The U.S. rare earth leader (a monopoly for now) reported a profit as its volumes and average selling prices rose in the quarter and it targeted sales growth in 2012 with REO production of about 8,000 metric tonnes to 10,000 metric tonnes. Shares were up over $30.00 briefly after earnings but that did not hold.
Today’s downgrade came from Piper Jaffray & Co. and the report seems a bit late on the surface. The rating change was down to Neutral from Overweight and more important is that the price target fell to $28 from $50 in the new call. In short, Piper Jaffray was already way ahead of the stock. Now this move puts the company in a more fully valued scenario as far as forward price-to-earnings expectations are concerned. Still, this is a stock which can fluctuate wildly on news out of China regarding rare earth material quotas.
Molycorp shares are down 3.8% at $25.79, and the 52-week trading range is $23.05 to $79.16.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
