Deutsche Cuts Price Target on Patriot Coal (PCX) Following Lower Volume Forecasts
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Price: $10.20 --0%
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 9 | New: 7
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 9 | New: 7
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Deutsche Bank is reiterating its Buy rating on shares of Patriot Coal (NYSE: PCX) and is reducing its price target from $22 to $21.
The company recently announced that it is now forecasting that production will be 450 thousand tons below its previous expectations. The lower production estimate is due to geology and closure of a thermal mine.
Management also stated that the Federal longwall move has been completed and the Panther move will be done by the end of September. Big Mountain will be closed for good since the roof collapsed.
With less production this means that the company's cost will increase in the third quarter. Patriot Coal stated that Appalachia costs would be roughly $70 per ton in the year and in the mid $70s for the third quarter. The firm notes that the costs will increase around $3 to $4 per ton in the third quarter.
As a result, Deutsche slashed its Q3, Q4, and 2012 EPS estimates from ($0.11), $0.25, and $1.89 to ($0.53), $0.04, and $1.73.
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 $14.33 yesterday.
The company recently announced that it is now forecasting that production will be 450 thousand tons below its previous expectations. The lower production estimate is due to geology and closure of a thermal mine.
Management also stated that the Federal longwall move has been completed and the Panther move will be done by the end of September. Big Mountain will be closed for good since the roof collapsed.
With less production this means that the company's cost will increase in the third quarter. Patriot Coal stated that Appalachia costs would be roughly $70 per ton in the year and in the mid $70s for the third quarter. The firm notes that the costs will increase around $3 to $4 per ton in the third quarter.
As a result, Deutsche slashed its Q3, Q4, and 2012 EPS estimates from ($0.11), $0.25, and $1.89 to ($0.53), $0.04, and $1.73.
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 $14.33 yesterday.
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