Deutsche Bank Maintains a 'Hold' on Alliance Resource Partners (ARLP); Leading Producer, But Upside Potential May Be Limited

January 17, 2012 3:29 PM EST
Get Alerts ARLP Hot Sheet
Price: $22.10 +1.38%

Rating Summary:
    6 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Deutsche Bank maintains a 'Hold' on Alliance Resource Partners (NASDAQ: ARLP) price target of $80.00.

Deutsche analyst says, "ARLP, headquartered in Tulsa, Oklahoma, is the fifth largest eastern U.S. coal producer and one of the few coal miners incorporated as a Master Limited Partnership in the US. It is a leading producer in the Illinois Basin (IB), which is a region positioned to benefit from the changing production profile in the US coal market and offers attractive growth potential for the company. As the company completes expansions, free cash flow generation should increase commensurately with production and declining growth capex. ARLP follows a highly contracted business model and offers investors a robust and steady dividend income stream. We view ARLP as a defensive investment in coal - via its contracted position and dividend payout - with more limited upside potential should market conditions tighten."

For an analyst ratings summary and ratings history on Alliance Resource Partners click here. For more ratings news on Alliance Resource Partners click here.

Shares of Alliance Resource Partners closed at $77.94 yesterday.

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