Westmoreland Coal +4.8% after Brean starts at Buy

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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