Barclays on North America Metals & Mining: Lowering Met Coal Assumptions; Cutting Numbers on ANR, PCX, BTU, & ACI

Barclays on North America Metals & Mining: Lowering Met Coal Assumptions

Analyst, David Gagliano, said, "While we maintain our view that met coal prices will rebound during the 2nd half of 2012, early indications of the Q2 trough price are lower than our previous estimate, and we believe the trajectory of the price rebound will be flatter than we previously estimated."

'As a result, we are lowering our EBITDA estimates by an average of 13% for 2012, and 25% for 2013 for the met-exposed equities, namely Arch Coal (NYSE: ACI), Alpha Natural Resources (NYSE: ANR), Peabody (NYSE: BTU), and Patriot Coal (NYSE: PCX)."

Within the coal sector, Gagliano, likes ANR, BTU and CONSOL Energy (NYSE: CNX), but acknowledges favoritism toward Freeport-McMoRan Copper (NYSE: FCX) and Stillwater Mining, when looking at the overall metals/mining sector.

Gagliano maintains an Overweight on ANR, but lowers PT from $29 to $23 and FY earnings from $0.64 to (0.60)

PCX maintained at Equalweight, PT lowered from $10 to $6 and FY earnings cut from (1.74) to (1.94)

BTU maintained at Overweight, PT lowered from $45 to $41 and FY earnings cut from $3.53 to $2.77.

ACI maintained at Equalweight, PT left at $15, but FY EPS cut from $0.95 to $0.71.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• DA Davidson Reiterates Buy Rating on Box, Inc. (BOX) on Secular Tailwinds for Demand
• Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results