Deutsche Bank Downgrades Yanzhou Coal Mining (YZC) to Hold, Believes Market is Now Overly Bullish

Deutsche Bank downgraded shares of Yanzhou Coal Mining (NYSE: YZC) from its previous rating of Buy to Hold with a price target of HK$10.40.

The firm notes the market has been overly bearish on thermal coal since October 2011, but notes valuations have leveled off. Deutsche doesn't forecast much upside given current levels and believes the market has now almost turned bullish, stating "we believe consensus expectations are too high for China Coal and Yanzhou Coal."

The firm forecasts roughly 10mt of Yanzhou’s 2012 production will carry weak margins and reduce its total gross margin by 4ppt YoY when combined wit the overall ASP drop, much higher than the consensus of 1.5ppt.

For an analyst ratings summary and ratings history on Yanzhou Coal Mining click here. For more ratings news on Yanzhou Coal Mining click here.

Shares of Yanzhou Coal Mining closed at $24.66 yesterday.

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