Nomura Securities Reiterates a 'Reduce' on Patriot Coal (PCX); Met Coal Contract Default
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Price: $10.20 --0%
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities reiterates a 'Reduce' on Patriot Coal (NYSE: PCX) price target of $5.00.
Analyst, Curt Woodworth, said, "We are lowering our 2012 EPS and EBITDA estimates for PCX to reflect the impact of a customer default on a met contract. PCX sold ~1.0mt of high vol B (likely in early 1Q) to a privately held US coal broker, which in turn had an agreement to sell the coal outside the US. Given the continued downturn in high vol B prices (now estimated near $85-90/ton), it is likely the foreign buyer backed out of the deal, causing the U.S. broker to default. We believe PCX will have significant difficulty moving these tons and estimate the EBITDA impact to be $40-$50 million for 2012. Our 2012E/13E EPS goes from ($1.80)/($2.90) to ($2.25)/($2.95)."
For an analyst ratings summary and ratings history on Patriot Coal click here. For more ratings news on Patriot Coal click here.
Shares of Patriot Coal closed at $3.94 yesterday.
Analyst, Curt Woodworth, said, "We are lowering our 2012 EPS and EBITDA estimates for PCX to reflect the impact of a customer default on a met contract. PCX sold ~1.0mt of high vol B (likely in early 1Q) to a privately held US coal broker, which in turn had an agreement to sell the coal outside the US. Given the continued downturn in high vol B prices (now estimated near $85-90/ton), it is likely the foreign buyer backed out of the deal, causing the U.S. broker to default. We believe PCX will have significant difficulty moving these tons and estimate the EBITDA impact to be $40-$50 million for 2012. Our 2012E/13E EPS goes from ($1.80)/($2.90) to ($2.25)/($2.95)."
For an analyst ratings summary and ratings history on Patriot Coal click here. For more ratings news on Patriot Coal click here.
Shares of Patriot Coal closed at $3.94 yesterday.
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