FBR Capital Maintains a 'Market Perform' on Patriot Coal (PCX); Based Production Gaining Solid Footing, Met Growth, and Reaching New Positive Milestones
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Price: $10.20 --0%
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains a 'Market Perform' on Patriot Coal (NYSE: PCX), PT $30.
FBR analyst says, "PCX reported slightly weaker-than-expected 1Q11 results, driven by higher-thanexpected costs. We trim 2011–2013 estimates to reflect higher costs; but, more importantly, the company should continue to trend nicely towards reaching cash flow–positive and earnings-positive in 2011. The production base appears to be holding relatively steady after facing S404 permit issues, normal underground MSHA safety blitzes, natural gas substitution, below-market steam coal contracts, and limited capital program. After all this, and a few years of seasoning, the company is gaining a solid footing as a public company and is able to restore organic met coal growth. Part of the debate: Can the company hit its met coal targets, keeping costs from rising above normal? Will Rick Whiting grow meaningfully through acquisition. The company is capitalizing on export steam and met coal to overcome the slow growth/negative domestic coal policy."
For more ratings news on Patriot Coal click here and for the rating history of Patriot Coal click here.
Shares of Patriot Coal closed at $26.09 yesterday.
FBR analyst says, "PCX reported slightly weaker-than-expected 1Q11 results, driven by higher-thanexpected costs. We trim 2011–2013 estimates to reflect higher costs; but, more importantly, the company should continue to trend nicely towards reaching cash flow–positive and earnings-positive in 2011. The production base appears to be holding relatively steady after facing S404 permit issues, normal underground MSHA safety blitzes, natural gas substitution, below-market steam coal contracts, and limited capital program. After all this, and a few years of seasoning, the company is gaining a solid footing as a public company and is able to restore organic met coal growth. Part of the debate: Can the company hit its met coal targets, keeping costs from rising above normal? Will Rick Whiting grow meaningfully through acquisition. The company is capitalizing on export steam and met coal to overcome the slow growth/negative domestic coal policy."
For more ratings news on Patriot Coal click here and for the rating history of Patriot Coal click here.
Shares of Patriot Coal closed at $26.09 yesterday.
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