UPDATE: Goldman Sachs Downgrades Arch Coal to Sell on Fundamental and Strategic Challenges
Goldman Sachs lowered its rating on Arch Coal (NYSE: ACI) from Neutral to Sell and reduced its price target from $7.50 to $5.
Goldman Sachs noted, "We lower ACI to Sell from Neutral, as we see shares as overvalued given fundamental and strategic challenges. We expect met coal guidance to be reduced. We see 22% downside to our $5.00 six-month multiples-based target price, down from $7.50, vs. 13% upside for the rest of coverage. We see shares as overvalued given a weak balance sheet/returns and strategic challenges."
Arch Coal closed at $6.64 on Monday.
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