- Cloud Peak Energy (CLD +0.8%) is upgraded to Outperform from Market Perform with a $24 price target, up from $18, at FBR Capital on improving steam coal markets benefiting PRB coal prices and the potential for free cash flow generation due to limited reinvestment capex needs.
- With CLD not planning to bid on any new federal coal leases for two years, the firm believes the company can use the surplus cash to buy back outstanding debt and/or more near-term accretive growth projects.
- Valuation has become more attractive with the recent pullback in the stock, helping to make CLD the most attractive coal stock in FBR's coverage on 2014-15 multiples.
Cloud Peak Energy gains on FBR upgrade
Jan 10 2014, 15:57 ET