Alpha Natural -3.6% as Goldman cuts to Sell

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

Alpha Natural Resources (ANR -3.6%) is downgraded to Sell from Neutral with a $5 price target, down from $7, at Goldman Sachs.

Although ANR positively surprised on its 2014 cost guidance, the firm believes lower costs will prove insufficient to offset weak spot met coal pricing and the expiration of favorable met coal contracts with domestic steel producers.

ANR entered 2013 contracting 9.6M tons of met coal priced at an average $113.25/ton, but Goldman sees little likelihood the company can enter 2014 with an average met coal contract position above $100/ton.

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