UBS Maintains a 'Neutral' on Patriot Coal (PCX); Trading More Like An Option Now
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Price: $10.20 --0%
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 6 | New: 58
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 6 | New: 58
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UBS maintains a 'Neutral' on Patriot Coal (NYSE: PCX) price target lowered from $5.50 to $2.50.
Analyst, Shneur Z. Gershuni, said, "Last week, PCX traded down heavily based on reports that the company was seeking advise ment from restructuring firms, inflaming bankruptcy speculation...We believe PCX’s near-term outlook lacks a clear path forward as doubt is cast over PCX’s ability to secure financing on favorable terms. Until uncertainties are removed, we believe PCX will trade more like an option and less on fundamentals given the event driven nature of its circumstance. At these depressed levels, we believe PCX’s s.tock price has built-in option value in the event financing is secured on manageable terms."
UBS maintains FY12/13 EPS loss at (2.36)/(2.14), saying no need to change estimates at this point. But, the situation will be closely monitored, citing risk from fear of bankruptcy, which may ultimately hinder future contracting volumes.
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 $2.60 yesterday.
Analyst, Shneur Z. Gershuni, said, "Last week, PCX traded down heavily based on reports that the company was seeking advise ment from restructuring firms, inflaming bankruptcy speculation...We believe PCX’s near-term outlook lacks a clear path forward as doubt is cast over PCX’s ability to secure financing on favorable terms. Until uncertainties are removed, we believe PCX will trade more like an option and less on fundamentals given the event driven nature of its circumstance. At these depressed levels, we believe PCX’s s.tock price has built-in option value in the event financing is secured on manageable terms."
UBS maintains FY12/13 EPS loss at (2.36)/(2.14), saying no need to change estimates at this point. But, the situation will be closely monitored, citing risk from fear of bankruptcy, which may ultimately hinder future contracting volumes.
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 $2.60 yesterday.
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