Nomura Securities Maintains a 'Neutral' on Walter Energy (WLT); Cutting Estimates Post Q2 Update
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Price: $0.16 --0%
Rating Summary:
1 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Walter Energy (NYSE: WLT) price target of $70.00.
Analyst, Curt Woodworth, said, "While we are lowering our 2Q EPS estimate to $0.39 from $0.75, we have only trimmed our 2012 estimate by $0.15 to $3.15 owing to better price assumptions for the 2H of the year. Demand for premium hard coking coal remains strong and WLT is benefiting from continued supply shortfalls in Australia coupled with a shift among steel producers towards using more LV HCC coals to blend with higher vol / semi soft products to take advantage of the significant price compression at the low end of the grade spectrum. WLT noted that PCI prices were holding up well with prices estimated near $164/tonne or 73% of the recent $225/tonne benchmark settlement, which is up from 71% benchmark linkage rate last quarter. WLT guided costs per ton to be flat with the first quarter whereas we had previously modeled a 6% sequential improvement."
For an analyst ratings summary and ratings history on Walter Energy click here. For more ratings news on Walter Energy click here.
Shares of Walter Energy closed at $45.06 yesterday.
Analyst, Curt Woodworth, said, "While we are lowering our 2Q EPS estimate to $0.39 from $0.75, we have only trimmed our 2012 estimate by $0.15 to $3.15 owing to better price assumptions for the 2H of the year. Demand for premium hard coking coal remains strong and WLT is benefiting from continued supply shortfalls in Australia coupled with a shift among steel producers towards using more LV HCC coals to blend with higher vol / semi soft products to take advantage of the significant price compression at the low end of the grade spectrum. WLT noted that PCI prices were holding up well with prices estimated near $164/tonne or 73% of the recent $225/tonne benchmark settlement, which is up from 71% benchmark linkage rate last quarter. WLT guided costs per ton to be flat with the first quarter whereas we had previously modeled a 6% sequential improvement."
For an analyst ratings summary and ratings history on Walter Energy click here. For more ratings news on Walter Energy click here.
Shares of Walter Energy closed at $45.06 yesterday.
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