UPDATE: Imperial Capital Upgrades Westmoreland Coal Company to Outperform, Raises PT
In a report published Friday, Imperial Capital upgraded its rating on Westmoreland Coal Company (NASDAQ: WLB) from In-Line to Outperform, and raised its price target from $7.00 to $13.00.
Imperial Capital noted, “Upgrading our rating on WLB shares to Outperform on higher EBITDA and free cash flow yield. Westmoreland reported 3Q12 results on 10/25/12, with significant improved coal segment results ($34mn in EBITDA, record 6mn tons of shipments, record EBITDA per ton of $5.76). Cash cost per ton in the coal segment declined 32% sequentially to $17 from $25 and net income of $7.3mn and EPS of $0.52. We are raising our 2012 and 2013 adjusted EBITDA estimates to $125mn and $144mn, respectively, from $119mn and $128mn, and EPS to ($0.31) and $1.16 from ($0.64) and ($0.07), respectively. Our estimates assume adjusted EBITDA per ton of $5.30 and annual production of 24mn tons.”
Westmoreland Coal Company closed on Thursday at $9.94.
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