Goldman Sachs Cut Met Prices, PTs in on U.S. Coal Stocks (ANR) (BTU) (WLT) (more...)

December 10, 2012 8:45 AM EST
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Analysts at Goldman Sachs cut met coal prices, saying they see a slower, longer grind back to mid-cycle.

Goldman cut 2013/2014 benchmark met coal prices by 8%/3% to $178/$195 per MT, respectively. The firm said a reductions to their forecasts for China, Europe and Japan seaborne imports mean less Australia and US exports should be needed. In addition, they see less parity support from Chinese domestic prices after the Goldman Sachs China coal team lowered domestic met price forecasts by 7% December 4.

The firm remains Neutral on U.S. coal stocks. Two more years of below midcycle
met prices make outperformance unlikely, they said.

Goldman reduced price target by 11%, suggesting 7% downside on average.

Price Target Cuts:
Alpha Natural Resources, Inc. (NYSE: ANR) (Neutral) - from $9 to $7
Arch Coal (NYSE: ACI) (Sell) - from $5 to $4
Cloud Peak (NYSE: CLD) (Neutral) - $24 no change
Consol Energy (NYSE: CNX) (Buy) - from $37 to $34
Peabody Energy (NYSE: BTU) (Neutral) - from $28 to $26
SunCoke Energy (Buy) (NYSE: SXC) - from $21 to $20
Walter Energy (NYSE: WLT) (Sell) - from $27 to $23

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