FBR Capital Upgrades Massey Energy (MEE) to Outperform; Raises Price Target
MEE Hot Sheet
Rating Summary:1 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
FBR Capital upgrades Massey Energy (NYSE: MEE) from Market Perform to Outperform. Price target increased from $22 to $32.
FBR analyst says, "Based on our fundamental analysis of sustainable Asian steel demand, we believe there are four covered companies currently capturing this met export benefit: Walter (NYSE: WLT), Peabody (NYSE: BTU), Alpha (NYSE: ANR), and, now, MEE. Specifically for MEE, we believe the company is capitalizing on its relationship with Indian steel buyers...In fact, MEE is the only company this quarter that posted sequentially flat domestic met coal production and shipments tied to high export volumes...Currently, the stock is attractively valued at 4.1x 2010E EV/EBITDA, versus the group average of 5.6x. We have noticed a positive shift in management's stance toward providing realistic guidance (1Q and, now, 2Q) and, as a result, the healing process of trusting estimates is beginning, enabling a CAPP peer group average on higher estimates. We still have worries about the company's steam contracting practice, permit issues, and lawsuit surprises."
To see more analyst ratings on MEE Click Here.
Massey Energy Company, through its subsidiaries, produces, processes, and sells bituminous coal primarily in the United States.
FBR analyst says, "Based on our fundamental analysis of sustainable Asian steel demand, we believe there are four covered companies currently capturing this met export benefit: Walter (NYSE: WLT), Peabody (NYSE: BTU), Alpha (NYSE: ANR), and, now, MEE. Specifically for MEE, we believe the company is capitalizing on its relationship with Indian steel buyers...In fact, MEE is the only company this quarter that posted sequentially flat domestic met coal production and shipments tied to high export volumes...Currently, the stock is attractively valued at 4.1x 2010E EV/EBITDA, versus the group average of 5.6x. We have noticed a positive shift in management's stance toward providing realistic guidance (1Q and, now, 2Q) and, as a result, the healing process of trusting estimates is beginning, enabling a CAPP peer group average on higher estimates. We still have worries about the company's steam contracting practice, permit issues, and lawsuit surprises."
To see more analyst ratings on MEE Click Here.
Massey Energy Company, through its subsidiaries, produces, processes, and sells bituminous coal primarily in the United States.
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