UPDATE: BMO Capital Markets Reiterates Outperform. $22 PT on Cloud Peak Energy; LT Outlook
BMO Capital Markets says in a recent note that it reiterates its rating of Outperform and $22 price target on Cloud Peak Energy (NYSE: CLD) following Q1 results.
BMO Capital Markets comments, "BMO reiterates the Outperform rating based on CLD's attractive cost and contract position. Cloud Peak is the lowest-cost producer in the lowest cost U.S. coal basin with ~100% of FY2012 production priced at $13.41/t and ~65% of FY2013 production priced at US$14.18/t. FY2012 export sales guidance is unchanged at ~4.3Mt, just 4-5% of volumes, but at very attractive margins given strong thermal coal pricing in the Pacific Basin. In 2013, Cloud Peak is expected to benefit from the expansion at Westshore Terminals in Vancouver to 33Mtpa from 29Mtpa."
CLD closed at $15.39 on Monday.
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