Piper Jaffray Maintains Neutral Rating On Molycorp

According to Piper Jaffray, Molycorp's (NYSE: MCP) Neutral rating is maintained.

Piper Jaffray reported that it maintains its Neutral rating on shares of MCP following the company's announcement of an acquisition of AS Silmet's mine and processing facilities in Estonia. “The acquisition – paid for in a combination of cash and MCP stock – doubles Molycorp's current production capacity and introduces niobium and tantalum to the company's product mix. We expect this acquisition to be approximately $0.15 - $0.20 accretive to Molycorp's 2011 earnings, and are taking our 2011 EPS estimates to $0.75 (from $0.00), and our 2012 EPS estimates to $3.48 (from $2.23). Our price target goes to $70 based largely on higher rare earth prices.”

Molycorp closed yesterday at $66.41.