UPDATE: ISI Group Lowers PT to $19.50, Maintains Hold on Teco Energy
ISI Group reiterates its Hold rating on Teco Energy (NYSE: TE) and revises its price taret down $0.50 to $19.50 per share, reflecting lower coal expectations.
ISI Group notes, "On 1/17/12, TECO Coal announced a planned reduction in 2012 production volumes reflecting the declines in coal prices over the past several months. The company now expects volumes of 7-7.3mm tons (previously guided to 8.2-8.5mm tons), avg selling price of >$96/ton, and avg production cost of $83-87/ton. Based on 3Q data, the 2011 avg selling price was expected to be >$88/ton and avg cost $79/ton. The bulk of volume cuts stems from decreased PCI sales."
TE closed at $18.26 per share on Tuesday.
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Tags: ISI Group