Nomura Securities Maintains a 'Buy' on Alpha Natural Resources (ANR); Attractive Valuation

Nomura Securities maintains a 'Buy' on Alpha Natural Resources (NYSE: ANR) price target of $20.00.

Analyst, Curt Woodworth, said, "ANR is CAAP survivor and valuation is attractive; lowering estimates but thesis intact. While we are reducing EPS estimates to account for more conservative PRB volume and un-priced met ASP assumptions in 2012, ANR confirmed that production cuts in CAPP thermal are EBITDA neutral to positive as we had forecast. The NAPP thermal mines continue to perform well with cash costs near $40/ton in 1Q-12 and strong shipment levels of 2.9mt. We are lowering our 2012 EPS estimate from a loss of $0.35 to a loss of $1.10 and have lowered our 2013 EPS estimate from a loss of $1.00 to a loss of $1.30. We think valuation remains attractive at 5.6x 2012E EV/EBITDA."

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 $14.85 yesterday.

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