I've just had a read of JP Morgan's latest research on Molycorp. . . .and then went back to late December to read their most recent substantive thoughts on Lynas (when they introduced the $2.71 price target).
As we all know, JP Morgan is the leading broker to both Moly and Lynas. . . . .but has different analysts covering the two stocks as Moly is covered out of NY and Lynas from Sydney.
Despite this, I am sure that the house view on the two stocks would be closely aligned, as share price targets are driven more by the basket price than anything else.
Therefore, based on today's Moly research, I would expect that the local LYC analyst is itching to put out a fresh report.
This will come as soon as the Sojitz financing is in place, and will most likely NOT increase the price target, BUT WILL make the point that AT CURRENT SPOT PRICES and IF YOU USE A 10% WACC. . . then you would value LYC at more than $10 a share.
mcp to catch to rare earth prices - jp morgan, page-3
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Last
$6.71 |
Change
-0.030(0.45%) |
Mkt cap ! $6.318B | |||
| Open | High | Low | Value | Volume |
| $6.72 | $6.80 | $6.70 | $5.809M | 860.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 41 | 10479 | $6.70 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.71 | 5976 | 30 |
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| Last trade - 12.30pm 05/09/2024 (20 minute delay) ? |
| LYC (ASX) Chart |