Foresight Energy Opens Higher As Analysts Launch Coverage

Foresight Energy LP FELP gained 1.5 percent early in Monday's session after at least five investment analysts initiated coverage on the newly public company.

The Midwestern coal mining company expects to use $210 million of proceeds from its recent public offering to pay off debt, with the remaining $113 million going to its reserves and to a member of management it didn't identify, according to filings.

Stifel analyst Paul Forward initiated with a Buy rating and a $20.20 price target. Despite of a weak overall outlook for U.S. thermal coal, "Foresight Energy is built to grow," Forward said in a note.

Foresight is focused on the Illinois Basin coal-producing region centered on southern Illinois and Indiana, and Forward expects that region will gain market share as a result of ongoing installations of scrubbers to control sulpher emissions.

JP Morgan's John Bridges, however, initiated coverage with a Neutral rating and a $23 target.

Others initiating coverage on Foresight Monday include Cowen at Outperform with a $24 target, Morgan Stanley at Overweight and Goldman Sachs at Neutral.

Shares traded recently at $20.31, up 0.54 percent.