UPDATE: Dahlman Rose Cuts Target on Arch Coal to $20

Dahlman Rose reiterates its Buy rating on Arch Coal

but lowers its price target to $20 from $25 on lower-than-expected production results in the fourth quarter. Dahlman Rose says, "Management announced that planned cuts in CAPP thermal operations, when added to the previously announced cuts in the Western Bituminous mine at Dugout Canyon, will total approx. 5 million tons in 2012. ACI also lowered 2012 capex to a range of $450 to $490MM, versus our previous $500MM. Half that is to be spent on the development of the Tygart met coal mine. Overall, guidance for 2012 was in line with our previous estimates, with the exception of PRB cash costs, which are roughly $0.50/ton higher." ACI closed at $15.58 a share on Friday.