UPDATE: BMO Capital Markets Upgrades Cloud Peak Energy to Outperform on Valuation, Balance Sheet Strength

BMO Capital Markets upgraded Cloud Peak Energy

from Market Perform to Outperform and raised the price target from $20.00 to $22.00. BMO Capital Markets said, "Cloud Peak has below-average costs for the Powder River Basin, one of the lowest-cost coal producing regions in the world, allowing it to compete even at natural gas pricing nearing US$3/mmBcf. The company also has a strong balance sheet and below-average valuation. … BMO Research's FY2013E EPS is unchanged at US$1.37. BMO Research expects earnings to fall year over year particularly due to falling margins in export coal." Cloud Peak Energy closed at $17.40 on Friday.