- UBS is the latest firm to turn negative on coal, expecting the seaborne met coal market to remain in oversupply and seeing risk to Wall Street expectations.
- Given the view of challenging met coal fundamentals and fair valuation, UBS downgrades Arch Coal (ACI -2.1%), Alpha Natural (ANR -0.2%), Peabody Energy (BTU -2.9%), Consol Energy (CNX -2.2%) and Walter Energy (WLT -4.9%) to Neutral from Buy.
- Stock target prices are cut across the board: ACI to $5 from $7, ANR to $5 from $12, BTU to $17, CNX to $42 from $48, WLT to $8 from $25.
- Cloud Peak Energy (CLD -0.5%) retains a Buy rating given a potential run in natural gas prices.
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BofA/Merrill and Jefferies have come out negative on coal in recent days.