BMO Capital Markets Comments on Arch Coal

BMO Capital Markets provided color on Arch Coal (NYSE: ACI) regarding the company's announcement of lowered FY2011 EPS and EBITDA guidance based on a roof fall in its Mountain Laurel Mine in a research report published today. BMO Capital Markets has an Outperform rating and $30 price target on Arch Coal.

In the report, BMO Capital Market states, "The revised guidance implies a significant H2/11 cost increase, some of which is no doubt temporary due to the longwall outage, but some of which may persist. Estimates will come down, but the shares appear to be discounting a fairly bearish outlook already."

Shares of Arch Coal closed Friday at $14.58, down 5.14% from Thursday's market close.