UPDATE: Nomura Securities Upgrades Alpha Natural Resources (ANR) to Buy

(Updated - April 13, 2012 9:55 AM EDT)

Nomura Securities upgraded Alpha Natural Resources (NYSE: ANR) from Neutral to Buy with a $20 price target, calling it their Top Pick in coal.

The firm comments, "We believe that Alpha will be a structural survivor in the CAPP market longer term. Importantly, coking coal exports are strong, and the majority of EBITDA for Alpha is generated from its high margin coking coal asset base (~80% of 2012E). We believe ANR is taking market share and now see less volume risk in 2012. In addition, we believe coking coal prices have reached a near-term bottom near $200-210/tone. With ANR trading at only 4.6x 2012E EV/EBITDA (historical average of 6.5x) and 11% FCF yield off our below consensus estimates, we find the valuation compelling."

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 $16.08 yesterday.

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