UPDATE: Brean Murray Carret & Co Revises PT on Cloud Peak Energy
According to a research report this morning, Brean Murray Carret & Co lowers the PT on Cloud Peak Energy (NYSE: CLD) from $24 to $22 due to higher than expected costs.
Brean Murray Carret & Co explained, “Our $22 target price is based on a detailed DCF model with an estimated 4.0x 2013 EV/EBITDA multiple. We are also reducing our EPS estimates for 2012 and 2013 to $1.83 and $2.04, respectively, down from our previous estimates of $2.06 and $2.24, respectively. Our lower EPS estimates are primarily the result of lower sales volumes and higher costs. The bottom line is that Cloud Peak remains an attractive investment in the coal space, given its low‐cost operations, strong balance sheet, and forward looking hedging strategy.”
Cloud Peak Energy closed yesterday at $15.39 as Brean Murray Carret & Co maintains its Buy rating.
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