- Westmoreland Coal (WLB +4.8%) is initiated with a Buy rating and a $22 price target at Brean Capital, which sees WLB as an attractive cash-flow story that provides investors with unique exposure to the North American thermal coal space.
- With steady demand from baseload power plants and west coast export optionality, the analysts believe WLB provides investors with attractive and consistent positive cash flows of ~$100M unlevered free cash flow annually, despite tough times across the industry.
- WLB's deal last week to acquire Sherritt's Canadian coal assets in Alberta and Saskatchewan will make it the sixth largest coal producer in North America, with annualized EBITDA of $200M, the firm estimates.
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