Brean Murray Carret & Co. Maintains a 'Buy' on Walter Energy (WLT); Poor Q2 Update, But Largely Priced In

June 29, 2012 8:39 AM EDT Send to a Friend
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Price: $7.72 +0.92%

Rating Summary:
    4 Buy, 18 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 26 | Down: 10 | New: 8
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Brean Murray Carret & Co. maintains a 'Buy' on Walter Energy (NYSE: WLT) price target of $63.00 (from $81.00).

Analyst, Lucas Pipes, said, "...Net net, primarily due to the miss on the cost side, we now expected EBITDA of $110 million for Q2 2012, down from $165 million, and EPS of $0.32, down from $0.88, previously. Our Q2 2012 estimates were roughly in-line with consensus estimates. However, despite the apparent size of the Q2 earnings revision, we would caution that the underperformance on the cost side was most likely driven by another disappointing performance of Walter's Willow Creek mine in Canada. With cost most likely flat at Walter's U.S. and mature Canadian operations, the impact of yesterday's Q2 update on future earnings appears to be largely priced into the stock."

FY12 EPS estimate lowered from $4.60 to $3.07, FY13 from $6.47 to $5.70.

For an analyst ratings summary and ratings history on Walter Energy click here. For more ratings news on Walter Energy click here.

Shares of Walter Energy closed at $45.06 yesterday.




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