Walter Energy -11% premarket on gloomy BofA coal assessment

|About: Walter Energy, Inc. (WLT)|By:, SA News Editor

Walter Energy (WLT) -11.4% premarket as BofA/Merrill comes out deeply negative on the coal sector (KOL), expecting depressed fundamentals over the next several years due to oversupply and reluctance to shut capacity.

On WLT, the firm fears the company is likely to face liquidity issues and cuts its price target on the shares to $2 from $8 "even assuming what we believe to be a best-case cost scenario."

ACI -2.5%, BTU -2.3%, ANR -1.5% premarket.