Nomura Securities on Coal: Highlights From Day 1 at McCloskey Coal USA Conference
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Rating Summary:
18 Buy, 17 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities on Coal: Highlights from day 1 at McCloskey Coal USA conference.
Analyst, Curt Woodworth, said, "Key takeaway is continued weakness in the U.S. steam coal market as inventories build to near 220mt and export demand weakens from oversupplied seaborne markets. Additional production cuts are likely as producers seek to base load more efficient mines and right size operations as volume contracts start to roll off and utilities become more aggressive with inventory reduction plans. On met coal, volumes appear to be softening somewhat into Europe. We believe that earnings estimates for the sector likely have another leg down post second-quarter results and we think Street assumptions for thermal coal prices for 2013 are still too high."
"We reiterate our Reduce ratings on Arch Coal (NYSE: ACI) and Patriot Coal (NYSE: PCX), and would look to add to our only Buy-rated coal stocks Alpha Natural (NYSE: ANR) and CONSOL Energy (NYSE: CNX) at current levels."
Analyst, Curt Woodworth, said, "Key takeaway is continued weakness in the U.S. steam coal market as inventories build to near 220mt and export demand weakens from oversupplied seaborne markets. Additional production cuts are likely as producers seek to base load more efficient mines and right size operations as volume contracts start to roll off and utilities become more aggressive with inventory reduction plans. On met coal, volumes appear to be softening somewhat into Europe. We believe that earnings estimates for the sector likely have another leg down post second-quarter results and we think Street assumptions for thermal coal prices for 2013 are still too high."
"We reiterate our Reduce ratings on Arch Coal (NYSE: ACI) and Patriot Coal (NYSE: PCX), and would look to add to our only Buy-rated coal stocks Alpha Natural (NYSE: ANR) and CONSOL Energy (NYSE: CNX) at current levels."
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