Foresight Energy Opens Higher As Analysts Launch Coverage
Foresight Energy LP (NYSE: 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.
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