A Fresh Start for Alpha Natural (ANR) On Major Repositioning
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Price: $0.24 --0%
Rating Summary:
2 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Alpha Natural Resources (NYSE: ANR) is under pressure Wednesday after S&P placed the company's credit rating on watch for a downgrade. However, according to analysts at UBS, the company's major repositioning news bodes well and shares should be higher.
On Tuesday, the company announced a major repositioning in its strategy, cutting roughly 8mm tons of PRB, 6.4mm tons of eastern thermal, and 1.6mm tons of met coal by early 2013. The company is reducing its workforce by 1,2000 and management expects to realize $150 million in cost savings.
UBS said while the restructuring was not overly surprising, the depth of the cuts were.
The firm is lowering 2012, 2013, and 2014 LPS estimates to $(1.62), $(1.31) and $(1.35) from $(1.10), $(1.30), and $(1.25), respectively. Their price target was cut from $19 to $15, although the Buy rating was maintained.
For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.
Shares of Alpha Natural Resources closed at $7.88 yesterday.
On Tuesday, the company announced a major repositioning in its strategy, cutting roughly 8mm tons of PRB, 6.4mm tons of eastern thermal, and 1.6mm tons of met coal by early 2013. The company is reducing its workforce by 1,2000 and management expects to realize $150 million in cost savings.
UBS said while the restructuring was not overly surprising, the depth of the cuts were.
The firm is lowering 2012, 2013, and 2014 LPS estimates to $(1.62), $(1.31) and $(1.35) from $(1.10), $(1.30), and $(1.25), respectively. Their price target was cut from $19 to $15, although the Buy rating was maintained.
For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.
Shares of Alpha Natural Resources closed at $7.88 yesterday.
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