UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on Arch Coal on Lowered EPS Estimates

In a report published Monday, Citigroup analyst Brian Yu reiterated a Neutral rating on Arch Coal ACI, but lowered the price target from $4.50 to $4.30. In the report, Citigroup noted, “Based on our 2014E and a 12.0x multiple we apply an 80% weighting on our $4.10/sh EV/EBITDA valuation and a 20% weighting on our DCF derived valuation of $5.00/sh to arrive at our reduced target price of $4.30/sh. Based on our revised commodity price forecasts, we have lowered our EPS estimates for '14 / '15 to -$1.30 / -$1.20 from -$1.10 / -$1.05.” Arch Coal closed on Friday at $4.36.