UPDATE: UBS Upgrades Cloud Peak Energy to Buy on PRB Outlook and Favorable Risk/Reward

UBS upgraded Cloud Peak Energy CLD from Neutral to Buy with a $22.00 price target. UBS commented, "Given our expectations for PRB to move upward, we revisited our outlook for CLD (100% exposed to the PRB) that was downgraded to Neutral from Buy in January 2012. At the time, we believed that persistently low and sinking natural gas prices would impact the PRB for the first time. As we look forward, we believe the PRB is on the other side of the inventory correction. Despite this outlook, CLD is down roughly 9.3% in 2013. We believe the current risk/reward tradeoff has turned in favor taking/adding to a position in CLD." Cloud Peak Energy closed at $17.14 on Thursday.