After JPMorgan (NYSE:JPM) raised its price target on rare earths giant Molycorp (NYSE:MCP) today, shares of the company jumped, helping to boost the overall rare earths sector.
Avalon Rare Metals (AMEX:AVL), Lynas Corporation (LYSCF), Neo Material Technol (NEMFF) and Rare Element Resources (AMEX:REE) are all up on the day.
The catalyst for the increase in the price target of Molycorp by JPMorgan was the recent boost in domestic rare earth prices in China.
The giant bank maintains their "Overweight" rating on Molycorp, while raising its price target from $66 to $74. They see the prices as being sustainable for a period of time.
Rare earths ETF Market Vectors Rare Earth/Strategic Metals (NYSE:REMX) was also trading up today.
Molycorp was trading at $59.68, gaining $4.17, or 7.51 percent, as of 2:17 PM EDT. Market Vectors Rare Earth/Strategic Metals was at $25.12, up $0.49, or 1.99 percent. Avalon was at $7.83, up $0.60, or 8.30 percent. Rare Element Resources rose to $13.38, gaining $1.19, or 9.76 percent.
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