Alpha Natural Resources -2.4% AH as Goldman cuts to Sell

|About: Alpha Natural Resources, Inc. (ANRZQ)|By:, SA News Editor

Alpha Natural Resources (ANR) -2.4% AH after Goldman Sachs downgrades shares to Sell from Neutral with a $4 price target, down from $6.

Goldman cites a challenging met coal price outlook which drives its EBITDA estimates sharply below consensus; valuations near historical peak levels on an EV/EBITDA basis; competitively disadvantaged assets, including higher-cost met coal assets and lower-quality PRB mines; and high leverage levels and an incrementally negative free cash flow forecast.

The firm says estimates need to be recalibrated lower before it could become more constructive on the stock.