Sterne Agee Reiterates Buy with $35 PT on Alpha Natural Resources

In a recent flash note, Sterne Agee reiterates its Buy rating and $35 target price on Alpha Natural Resources

as the company tones down thermal coal supply to balance lower demand. Sterne Agee notes, "Alpha Natural Resources announced measures to curtail Central Appalachia thermal coal and lower quality high-vol metallurgical coal production in response to weaker demand for both thermal and met coals in the recent weeks. We support management's decision to reserve certain thermal and met coals for better market conditions. Alpha's decision to curtail coal production supports our call earlier in January for a reduction in production forecasts out of the U.S. as mining costs and near-term demand uncertainties force marginal cutbacks. As met coal prices recede from 2011 highs, we would expect producers to cut marginal production, helping to floor pricing." ANR closed at $22.78 a share on Friday.