UPDATE: Credit Suisse Lowering Price Target on Arch Coal
Credit Suisse is out with a research report on Arch Coal (NYSE: ACI) and it is lowering its price target to $18 from $30, but it has a Neutral rating on shares.
In a note to clients, Credit Suisse writes, "The significant cut to full year guidance is primarily a function of the location of the geologic issues/roof fall, which impacted one of ACI's most profitable operations (Mountain Laurel produces approximately 5.1m tons of metallurgical quality coal per year). While coal mining is inherently risky, we expect more color on the "geologic issues" encountered at Mountain Laurel to determine any longer-term potential impact when ACI reports Q3 earnings on Oct. 28. Additionally, there is still uncertainty on the final impact of purchase price accounting (ie: DD&A impact) from the ICO acquisition, which could impact 2011 EPS."
Shares of ACI are down $1.63 in pre-market trading to $12.95.
