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In a report published Tuesday, Stifel analyst Paul Forward initiated coverage on
Cloud Peak EnergyCLD with a Hold rating.
In the report, Stifel noted, “We are initiating coverage on Cloud Peak Energy with a Hold rating. We view Cloud Peak as a firm that is especially appealing to investors taking a positive view on the Powder River Basin (PRB), a region with world-class coal geology and low costs. As the only pure-play publicly traded PRB coal producer, Cloud Peak offers investors exposure to U.S. coal markets with an attractive mix of (1) small-cap size of about $1 billion market cap; (2) relatively low-risk, predictable operations; and (3) heavyweight status as a supplier of energy to the U.S. economy. For investors in coal, we view Cloud Peak as the lower-risk ‘tortoise' that outperformed risk-seeking ‘hares' in the poor coal markets of the past two years. But a coal market recovery could favor those downtrodden competitors, in our view.”
Cloud Peak Energy closed on Monday at $16.21.
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