UPDATE - Barclays Initiates Coverage on SunCoke Energy (SXC) with an Overweight; Strong Growth Potential

UPDATE - Barclays initiates coverage on SunCoke Energy (NYSE: SXC) with an Overweight. PT $20.00.

Barclays analyst says, "Our positive rating reflects the company's strong growth potential over the next 10 years, the steady and robust earnings and cash flow stream at its core coke operations, and inexpensive valuation. SXC was recently spun-off from Sunoco (NYSE: SUN) via a partial IPO in July 2011."

"SXC consists of two businesses with very different characteristics: 1) a small
metallurgical coal mining operation, and 2) the largest merchant coke supplier to the U.S. steel industry. While earnings from its coal operation have fluctuated and will likely continue to fluctuate widely from one period to another, the company's coke business is modeled based on long-term take-or-pay contracts with very predictable and steady income and cash flow streams...Between 2011 and 2015, we estimate SXC net income and EBITDA will increase by 20% and 24% p.a., respectively, while its coke operation's pre-tax income and EBITDA could rise by 23% and 21% p.a., respectively."\

To see more ratings changes on SXC, Click Here

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