UPDATE: Jefferies Maintains Buy on Arch Coal; Lowers PT from $18 to $12
Jefferies reiterated a Buy rating on Arch Coal (NYSE: ACI) and lowered its price target from $18 to $12.
Jefferies wrote, “While we too have been humbled by the massive erosion in coal fundamentals this year, we have believed panic and bearishness regarding Arch's financial position are unjustified. Arch's results were impressive in that a PRB leader sharply reduced production and was able to keep its cost/ton low. The coal cycle is turning. And, we believe Arch's reserves are substantially undervalued by the market.”
Arch Coal closed at $6.80 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.