Piper Jaffray Raises MCP Target To $43 From $37

Piper Jaffray is raising its PT on shares of Molycorp, Inc. MCP to $43, up from $37. This follows yesterday's news that China had cut its rare earth export quota by 11%. “While the Chinese government continues to restrict the export of rare earths and cut its quota for 1H11 by 11%, the quota came in above our expectations and if annualized it would represent a comparable level to 2010 following several years of sharp y/y declines,” Piper Jaffray writes. “We were expecting an export quota reduction of 20% or more. Molycorp is a clear beneficiary of restrictive Chinese policy regarding rare earths, but we cautious investors to avoid falling victim to the hype following the stock's sharp run up in recent weeks.” Molycorp closed Tuesday at $46.18.