Citi Upgrades Alpha Natural (ANR), Freeport (FCX), Says Thermal Coal Could Be 'Next Cinderella Story'

Shares of Alpha Natural (NYSE: ANR) and Freeport-McMoRan (NYSE: FCX) are up sharply in Monday's pre-open trading session following upgrades from Citi's Brian Yu.

The analyst now rates each stock a Buy, up from Neutral previously.

Yu said he believes the US thermal coal market is near cyclical lows and could even be the "next cinderella story."

The Citi analyst pointed out Alpha Natural will likely generate positive cash flow, with potential upside to estimates amid a bounce in thermal coal demand and declining nat gas prices.

Yu noted the sector's earnings will be kicked off on April 19th with Peabody Energy's (NYSE: BTU) report.

Shares of Alpha Natural are up 3.1 percent to $16.15 at last check, while shares of Freeport are up about 1.7 percent.

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