Goldman Sachs Reiterates Buy on SunCoke Energy (SXC)
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Price: $9.43 +3.17%
Rating Summary:
7 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 13
Rating Summary:
7 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 13
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Goldman Sachs reiterated a Buy rating on SunCoke Energy (NYSE: SXC) with a price target of $26.00. Analyst Neil Mehta sees an attractive entry following a recent sell-off.
"SXC sold off with coal stocks last week (-7% vs. sector -7% and S&P -2%), presenting an attractive entry point, in our view. At its Analyst Day on March 11, SXC announced plans to drop down its entire domestic coke making assets into its MLP over time. The first of the assets to be dropped down to the MLP would be 33% of the Haverhill and Middletown coke facilities, representing a potential positive catalyst," said Mehta.
"Key drivers of our positive outlook for SXC include: (1) incremental drop downs of domestic coke assets to its MLP, which should narrow the valuation gap versus other contracted infrastructure/MLP stories, (2) organic growth through a recent contract negotiation at Indiana Harbor and a potential new project in Kentucky, (3) potential for tuck-in acquisitions in the coal logistics and the iron ore processing segments, (4) the possible exit from the coal segment, and (5) long-term capital allocation," he added.
For an analyst ratings summary and ratings history on SunCoke Energy click here. For more ratings news on SunCoke Energy click here.
Shares of SunCoke Energy closed at $21.73 yesterday.
"SXC sold off with coal stocks last week (-7% vs. sector -7% and S&P -2%), presenting an attractive entry point, in our view. At its Analyst Day on March 11, SXC announced plans to drop down its entire domestic coke making assets into its MLP over time. The first of the assets to be dropped down to the MLP would be 33% of the Haverhill and Middletown coke facilities, representing a potential positive catalyst," said Mehta.
"Key drivers of our positive outlook for SXC include: (1) incremental drop downs of domestic coke assets to its MLP, which should narrow the valuation gap versus other contracted infrastructure/MLP stories, (2) organic growth through a recent contract negotiation at Indiana Harbor and a potential new project in Kentucky, (3) potential for tuck-in acquisitions in the coal logistics and the iron ore processing segments, (4) the possible exit from the coal segment, and (5) long-term capital allocation," he added.
For an analyst ratings summary and ratings history on SunCoke Energy click here. For more ratings news on SunCoke Energy click here.
Shares of SunCoke Energy closed at $21.73 yesterday.
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