UPDATE: Dahlman Rose Lowers PT on Molycorp to $120

Dahlman Rose is out with its report today on Molycorp MCP, maintaining Buy. In a note to clients, Dahlman Rose writes, "We continue to view MCP shares as the best vehicle to participate in the rare earth industry. Even in a much lower rare earth price environment, we believe that the company can generate outsized returns. That being said we are modestly decreasing our price target to $120 from $125 to account for the additional dilution created by the convertible security." At the time of posting, shares of MCP were trading pre-market at $53.81, up 2.61% from Monday's close.