J.P. Morgan Initiates Coverage On Alliance Resource Partners

J.P. Morgan Chase & Co. is out with a research report on Alliance Resource Partners (NASDAQ: ARLP) and is initiating coverage with an Overweight rating and a $82 price target.

In a note to clients, J.P. Morgan Chase & Co. writes, "We are initiating on Alliance Resource Partners (ARLP), a growing yield-focused Illinois Basin (ILB) coal producer, with an Overweight rating. We expect the company to continue to perform well due to sales growth from low cost Illinois Basin coal as newly “scrubbed” utilities return to this high BTU coal. New emissions rules have created some uncertainty for utilities, but we feel utility closures will be limited and any excess coal will find a home in the export market."

Shares of ARLP gained $2.79 yesterday to close at $72.37.