The stock is up 6.89 (13.81%) at $56.89.
Dahlman Rose & Co. is raising its price target on shares of Molycorp, Inc. (NYSE: MCP) to $85. It has a Buy rating on shares.
In a note sent to investors, Dahlman Rose writes, "The company has entered into JVs with Hitachi and Sumitomo. We believe that both partnerships create long-term value for shareholders. The JV with Hitachi will allow Molycorp to develop rare earth magnets in the US, helping the company complete its mine-to-magnets manufacturing supply chain. While the agreement with Sumitomo provides Molycorp with attractive financing and access to the wealth of mining expertise that Sumitomo has developed over many years.
We are increasing our price target to $85 per share from $49. We believe that the moves by China will be supportive of the medium-term prices for REE."
Dahlman was part of the selling group when MCP IPO'd:
CIBC Credit Suisse
Stifel Nicolaus Weisel Dahlman Rose & Company Piper Jaffray