Dahlman Rose Downgrades Massey Energy Co. (MEE) to Hold; Labor Retention Hits 1Q Volumes, Costs
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Price: $65.14 --0%
Rating Summary:
1 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
1 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Dahlman Rose downgraded Massey Energy Co. (NYSE: MEE) from Buy to Hold.
Dalman analyst says, "Massey's 1Q11 adjusted EBITDA was $149MM versus consensus and 4Q10 figures of $185MM and $59MM, respectively. Weak sales volume and high cash operating costs had a significant negative impact during the quarter despite strong metallurgical price realizations. Full-year 2011 guidance had several unfavorable changes, described by management as partially being a result conservatism and the weak first-quarter results. Total sales volume is expected to be 41-44MM tons, down from 43-47 tons forecast in February. Costs are guided at $64-67/ton, up sharply from $59-62."
"The MEE/Alpha Natural (NYSE: ANR) merger remains on track to close immediately following shareholder votes June 1. We continue to provide standalone estimates for MEE and are adjusting our estimates following the quarterly results. We are downgrading Massey to a Hold from Buy as the stock is near our target valuation and we see the deal close as highly probable and priced in."
For more ratings news on Massey Energy Co. click here and for the rating history of Massey Energy Co. click here.
Shares of Massey Energy Co. closed at $65.25 yesterday.
Dalman analyst says, "Massey's 1Q11 adjusted EBITDA was $149MM versus consensus and 4Q10 figures of $185MM and $59MM, respectively. Weak sales volume and high cash operating costs had a significant negative impact during the quarter despite strong metallurgical price realizations. Full-year 2011 guidance had several unfavorable changes, described by management as partially being a result conservatism and the weak first-quarter results. Total sales volume is expected to be 41-44MM tons, down from 43-47 tons forecast in February. Costs are guided at $64-67/ton, up sharply from $59-62."
"The MEE/Alpha Natural (NYSE: ANR) merger remains on track to close immediately following shareholder votes June 1. We continue to provide standalone estimates for MEE and are adjusting our estimates following the quarterly results. We are downgrading Massey to a Hold from Buy as the stock is near our target valuation and we see the deal close as highly probable and priced in."
For more ratings news on Massey Energy Co. click here and for the rating history of Massey Energy Co. click here.
Shares of Massey Energy Co. closed at $65.25 yesterday.
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