real-time news and commentary for investors
Tuesday, Oct 8
Cloud Peak Energy +2.2% after Stifel raises to Buy
- Cloud Peak Energy (CLD +2.2%) is upgraded to Buy from Hold with an $18 target price at Stifel Nicolaus.
- Valuation is compelling, in Stifel's view, at an EV/EBITDA multiple of 5.3x its unchanged 2014 EBITDA estimate of $227M vs. the U.S. coal mining peer group average of 7.9x.
- A Q3 volume recovery in CLD's home turf of the Powder River Basin probably helps the near-term earnings outlook, although the firm is more encouraged by industry moves to cut capacity in an ongoing soft market for U.S. thermal coal.