BMO Capital Markets downgraded Walter Energy WLT from Outperform to Market Perform and lowered the price target from $43.00 to $35.00.
BMO Capital Markets commented, "BMO Research expects a rebound in met coal pricing, which would potentially benefit Walter, but the company faces a near-term headwind given relatively high financial leverage and falling margins. Walter typically trades above the group due to its value as a pure-play met coal company and persistent takeover speculation. BMO Research also expects Walter's premium to continue, but the current valuation appears to adequately reflect that premium."
Walter Energy closed at $31.66 on Friday.
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