PITTSBURGH (AP) ¿ Shares of Thompson Creek Metals Co. rose Tuesday as an analyst upgraded the producer of molybdenum, which strengthens steel.
In a note to investors, Deutsche Bank analyst Jorge Beristain wrote that his firm maintains "a positive view for molybdenum given demand from new applications, uncertain supply growth, and a shifting industry cost structure as higher-cost primary product accounts for a greater proportion of world output." He upgraded Thompson Creek's stock to "Buy" from "Hold."
After plunging in the second half of 2008, molybdenum's price outlook has improved significantly in the first half of this year on producer discipline and Chinese imports, he wrote, but it still has lagged the recovery of other metals versus their 52-week peaks.
Thompson Creek shares climbed 79 cents, or 6.6 percent, to $12.68 in afternoon trading.