Goldman Sachs Comments on Thermal Stocks in Coal

According to Goldman Sachs, thermal stocks with catalysts are oversold. Goldman Sachs said that, “We retain our Attractive coverage view with 21% average potential return. Stocks appear to be discounting the majority of the tough fundamentals we now assume in our estimates (discussed below), but we believe consensus is yet to fully reflect this, with the stocks down an average of 46% vs. oneyear forward consensus EBITDA down just 11% since the S&P 500 peaked on July 22. Diversified thermal-coal stocks CNX and BTU look most oversold.”