Wells Fargo Starts SunCoke Energy (SXC) at Outperform; Defensive And Inexpensive

Wells Fargo initiates coverage on SunCoke Energy (NYSE: SXC) with an Outperform. PT $16.00.

Wells analyst says, "We believe the contract manufacturing business model offers investors resilient EBITDA generation against a volatile backdrop, in addition to longer-term earnings growth from capacity expansion opportunities. We also believe the shares will perform better once parent company Sunoco (NYSE: SUN) completes its spinout in late January, a contract with ArcelorMittal (NYSE: MT) is firmed, and longer-term if the company converts to an MLP structure."

For an analyst ratings summary and ratings history on SunCoke Energy click here. For more ratings news on SunCoke Energy click here.

Shares of SunCoke Energy closed at $11.25 yesterday.

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