Dahlman Rose Downgrades BTU, ANR & WLT; Reiterates 'Buy' on CNX, CLD & ACI
Tweet
Share
E-mailGet Alerts BTU Hot Sheet
Price: $26.85 --0%
Rating Summary:
7 Buy, 12 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 11 | New: 19
Rating Summary:
7 Buy, 12 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 11 | New: 19
Join SI Premium – FREE
This morning, Dahlman Rose downgraded Peabody (NYSE: BTU), Alpha Natural Resources (NYSE: ANR) and Walter Energy (NYSE: WLT) from Buy to Hold, saying these three names have the most metallurgical coal exposure. (See this morning's details here)
Analyst, Daniel Scott, said, "We do not think that the long-term met coal story is broken, but it will take the industry time to rebalance supply with demand. Lower met pricing during this balancing will deal sharp blows to the EBITDA of the three companies downgraded."
However, at the same time, Scott reiterated a 'Buy' rating on Consol Energy (NYSE: CNX)(low-cost Appalachian production), Cloud Peak Energy (NYSE: CLD) and Arch Coal (NYSE: ACI)(low-cost Powder River Basin Exposure), citing a floor in thermal.
Scott said, "We are more positive on the thermal products, as coal burn during the hot summer months and a rise in gas prices from springtime lows, makes us think we are nearing an inflection point in domestic thermal markets."
Analyst, Daniel Scott, said, "We do not think that the long-term met coal story is broken, but it will take the industry time to rebalance supply with demand. Lower met pricing during this balancing will deal sharp blows to the EBITDA of the three companies downgraded."
However, at the same time, Scott reiterated a 'Buy' rating on Consol Energy (NYSE: CNX)(low-cost Appalachian production), Cloud Peak Energy (NYSE: CLD) and Arch Coal (NYSE: ACI)(low-cost Powder River Basin Exposure), citing a floor in thermal.
Scott said, "We are more positive on the thermal products, as coal burn during the hot summer months and a rise in gas prices from springtime lows, makes us think we are nearing an inflection point in domestic thermal markets."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Seaport Global Securities Upgrades Analog Devices (ADI) to Buy, 'appears to be entering the sweet part of the cycle'
- JPMorgan Upgrades BWP Trust (BWP:AU) to Neutral
- Cantor Fitzgerald Starts Milestone Pharmaceuticals (MIST) at Overweight
Create E-mail Alert Related Categories
Analyst Comments, DowngradesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
