Barclays Maintains an 'Overweight' on Alpha Natural Resources (ANR); Lowering the Bar, But Still See Compelling Valuation

Barclays maintains an 'Overweight' on Alpha Natural Resources (NYSE: ANR) price target lowered from $33 to $29.

Analyst, David Gagliano, said, "We believe ANR shares will be among the best performing coal stocks over the next 6-12 months due to our view that 1) Global met coal prices will rebound in 2H'12 in conjunction with a rebound in China's steel production 2) Synergies and cost control from last year's MEE acquisition will continue to help results and 3) The valuation gap between ANR and its closest peers will continue to close."

Following Q4 results, Gagliano lowered FY12 EPS estimate from $0.85 to $0.64 and FY13 from $2.81 to $1.81, but maintains an Overweight, saying revisions are consistent with other cuts in the coal sector (from falling prices).

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 $20.46 yesterday.

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