Standpoint Research Upgrades Arch Coal Inc (ACI) to Buy

Standpoint Research upgraded Arch Coal Inc (NYSE: ACI) from Hold to Buy.

Standpoint analyst, Ronnie Moas, said, "We dropped ACI from Buy to Hold in October and see the recent $7 (20%) correction in ACI as an opportunity to reinstate a name that we were early to exit from in Q4. Additionally, I do like the deal announced at the end of April with ACI taking over ICO for $3.4 billion...The $18 correction in crude oil prices from $114 to $96 is a buying opportunity for the medium- and long-term investor. I would not get too aggressive though … I still remember the drop from $140 to $40 three years ago as if it was yesterday."

"This name is not recommended for those who are already overweight Energy and/or with a near-term time horizon and/or with a high beta-portfolio. We are currently under-weight Energy, and looking at the $18 correction in crude as an opportunity to reduce that bet while taking a longer-term view. We now have six open recommendations in this sector and the addition reduces our underweight from 420 bps to 260 bps versus the Energy weight in the S&P-500."

For more ratings news on Arch Coal Inc click here and for the rating history of Arch Coal Inc click here.

Shares of Arch Coal Inc closed at $30.38 yesterday.

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