UPDATE: Goldman Sachs Upgrades Arch Coal to Neutral on More Balanced Risk/Reward

Goldman Sachs raises its rating on Arch Coal

from Sell to Neutral and reiterates its $8 target price on shares. Goldman Sachs says, "We raise our rating for Arch Coal to Neutral from Sell, as we see the risk/reward as now more balanced, with our prior concerns around thermal volume cuts and its balance sheet now largely discounted in the stock after lagging. Since adding ACI to the Sell List on 3/18/12 the shares are -40% vs. -22%/-6% for coal peers/S&P 500. Over the past 12 months ACI is -74% vs. -56%/0% for coal peers/S&P 500. ACI held a meeting with analysts in West Virginia on May 22-23. No major changes to company strategy, growth opportunities or M&A were disclosed." ACI closed at $7.41 on Wednesday.