Massey Energy Company (MEE) Maintains Market Perform Rating

Analyst Meredith Bandy at BMO Capital Markets has released an update on Massey Energy Company (NYSE: MEE). The company has announced an agreement to purchase Cumberland Resources for $960 million in a cash and stock deal.

BMO Capital Markets expects the deal to be 10% accretive to 2010 earnings and even more in the long-term if Massey can shift more of Cumberland’s production from thermal to met.

BMO Capital Markets continues to rate Massey Energy Company as Market Perform and has maintained its $50 price target, , which is under review.