UPDATE: Jefferies Cuts PT to $18 on Arch Coal; Tough Environment

Jefferies lowers its price target on Buy-rated Arch Coal

from $24 to $18 as the company turns the corner in a tough environment. Jefferies says, "Arch reported 1Q adjusted diluted EPS of -$0.04, missing the Street's expectation of $0.16. Showing discipline in a challenging year for coal fundamentals, the company trimmed 2012 volume guidance by 13% for both thermal and met. Managing liquidity in light of reduced revenue expectations, Arch cut 2012 capex guidance by 10%, cut the dividend from $0.11 to $0.03 per share, and announced it is considering asset sales." ACI closed at $9.79 on Tuesday.