Goldman Sachs Raises Coal Forecasts, Lifts Price Targets On Coal Stocks (ANR, ACI, MEE)

Earlier, Goldman Sachs raised their Asia and US hard coking coal benchmark forecasts for 2010-2012 citing confidence that US and global spare capacity is likely to be nearly exhausted due to strong Chinese steel demand and greater recovery in met coal demand from Japan and Korea.

The firm raised their 2010-2012 Asia hard coking benchmark forecasts to $180, $160, and $133 per MT from $140, $140, and $120, and US benchmarks to $130, $128, and $114 per ton from $107, $107, and $100.

The firm raised their price target on Alpha Natural Resources (NYSE: ANR) from $43 to $50, Arch Coal (NYSE: ACI) from $21 to $24, Consol Energy (NSYE: CNX) from $45 to $54, Massey Energy (NYSE: MEE) from $33 to $37, Patriot Coal (NYSE: PCX) from $9 to $12, Peabody Energy (NYSE: BTU) from $46 to $50.

Conviction Buy rated Alpha Natural Resources (NYSE: ANR) and Peabody Energy Corp. (BTU) remain their Best Ideas in the group. MEE is rated Buy, PCX is rated Sell.

The coal group, as broadly represented by ETF Market Vectors Coal (NYSE: KOL), is flat today despite the bullish call.

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