Deutsche Bank Upgrades Arch Coal Inc (ACI) to Buy

Deutsche Bank upgraded Arch Coal Inc (NYSE: ACI) to Buy with a price target of $29.00.

Deutsche analyst says, "Arch Coal, based in St. Louis, Missouri, is the second largest publicly traded coal producer in the US. It is a leading producer in the PRB, WBIT, ILB, and Appalachia regions. It is also a met coal producer, with production potentially increasing should demand in steel markets warrant a production ramp. In June 2011, Arch Coal completed the acquisition of International Coal, which has ~1.1b tons of reserves (30% met) in the Appalachia and Illinois Basins. Arch Coal has priced commitments for much of expected sales volumes in 2011 (87%), but it maintains leverage to rising met/steam coal prices with the remaining tonnage and for 2012. We rate ACI shares a Buy due to attractive valuation and the scale and defensive nature of its thermal coal business."

For more ratings news on Arch Coal Inc click here and for the rating history of Arch Coal Inc click here.

Shares of Arch Coal Inc closed at $19.21 yesterday.

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