Goldman's Peabody upgrade lifts other coal shares

|By:, SA News Editor

Goldman's bullish take on Peabody Energy (BTU +4.2%) and other cost-cutters in the segment is lifting shares of other coal companies.

Other companies with strong cost control potential cited by Goldman include Neutral-rated Walter Energy (WLT +7.3%) and Alpha Natural Resources (ANR +5.7%).

The firm also likes restructuring stories, such as Buy-rated SunCoke Energy (SXC +2.3%); the firm sees high potential that SXC drops down coke-making assets from the parent to its MLP early next year.

Even Arch Coal (ACI +5.2%), which Goldman suggests avoiding because of its weak balance sheet, is sharply higher.