UBS Maintains a 'Buy' on Alpha Natural Resources (ANR); Adjusting Estimates for Cuts, but Met Contracting is 2012 Wild Card
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Price: $0.24 --0%
Rating Summary:
2 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on Alpha Natural Resources (NYSE: ANR) price target lowered from $40 to $39.
UBS analyst said, "On Friday afternoon, ANR announced the idling of 10 mining operations in CAPP that will reduce production by 4mm tons between now and early 2013. Weak demand prompted the reduction; with 2.5mm tons of thermal and 1.5mm tons of high-vol met coming offline. The company cited fuel switching and regulation as the primary drivers of the production pull-back. We suspect some of the thermal closures are the negative FCF mines ANR has previously talked about."
"Due to the production cut, we are lowering our ‘12 and ‘13 est. to $0.25/$0.27 from $0.44/$0.36. However, our est. assumes un-contracted HV-B tons sold at an avg. of $114/t at the mine for ‘12, below the $135/t PCX contracted and thus there could be some upside once contracting details are released with the 4Q CC."
For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.
Shares of Alpha Natural Resources closed at $22.78 yesterday.
UBS analyst said, "On Friday afternoon, ANR announced the idling of 10 mining operations in CAPP that will reduce production by 4mm tons between now and early 2013. Weak demand prompted the reduction; with 2.5mm tons of thermal and 1.5mm tons of high-vol met coming offline. The company cited fuel switching and regulation as the primary drivers of the production pull-back. We suspect some of the thermal closures are the negative FCF mines ANR has previously talked about."
"Due to the production cut, we are lowering our ‘12 and ‘13 est. to $0.25/$0.27 from $0.44/$0.36. However, our est. assumes un-contracted HV-B tons sold at an avg. of $114/t at the mine for ‘12, below the $135/t PCX contracted and thus there could be some upside once contracting details are released with the 4Q CC."
For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.
Shares of Alpha Natural Resources closed at $22.78 yesterday.
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