Molycorp named a Best Pick for 2014 at DA Davidson, +5% premarket

|By:, SA News Editor

Molycorp (MCP) +5% premarket after DA Davidson names it as a Best Pick for 2014, saying MCP is positioned to become "the most prominent, vertically integrated, low-cost supplier of rare earth materials outside of China" following heavy modernization and expansion investments at the key Mountain Pass facility (Briefing.com).

Application of rare earths in high-growth end markets such as semiconductors, hybrid and electric vehicles, wind turbines and lasers is expected to raise demand at a 9% CAGR through 2016, the firm says.

Shares are Buy rated with a raised price target of $8 from $6 prior.