UPDATE: Goldman Sachs Initiates SunCoke Energy at Neutral

Goldman Sachs is out with its report today on SunCoke Energy

, initiating SXC at Neutral. In its report, Goldman Sachs writes, "We view the SXC business mix favorably as: (1) it provides coal/energy investors with a defensive investment alternative, as SXC derives the majority of its EBITDA from met coke via take-or-pay contracts with limited volume or pricing risk; (2) it has superior, relatively low-risk long-term EBITDA growth primarily driven by two coke capacity expansions; and (3) we see the potential for further upside from domestic and international coke expansions not in our estimates or valuation. However, we initiate with a Neutral rating as we see more attractive upside and near-term company-specific catalysts for Buy-rated BTU

and CNX

." Goldman Sachs has an $18 PT on SXC. Shares of SXC closed Monday at $14.28, up 2.73% from Friday's close.