Goldman Sachs Cuts Alpha Natural Resources (ANR) to Sell on Challenging Met Coal Outlook

March 6, 2014 4:49 PM EST Send to a Friend
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Price: $1.94 -9.35%

Rating Summary:
    5 Buy, 18 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 27 | Down: 26 | New: 17
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Goldman Sachs downgraded Alpha Natural Resources (NYSE: ANR) from Neutral to Sell with a price target of $4.00 (from $6.00).

Analyst Neil Mehta said, "We downgrade Alpha Natural Resources (ANR) from Neutral to Sell, with a 6-month price target of $4, implying a -24% return vs. -1% for our coverage group. We are downgrading to Sell given: (1) a challenging met coal price outlook, driving our EBITDA estimates sharply below consensus; (2) valuations near historical peak levels on an EV/EBITDA basis; (3) competitively disadvantaged assets, including higher-cost met coal assets and lower-quality PRB mines; and (4) high leverage levels and incrementally negative FCF on our new forecasts. We believe estimates need to be recalibrated lower before we can potentially become more constructive on the stock."

For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.

Shares of Alpha Natural Resources closed at $5.24 yesterday.


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