UPDATE: BMO Capital Markets Downgrades Walter Energy to Market Perform on Margin and Leverage Risk

BMO Capital Markets downgraded Walter Energy

from Outperform to Market Perform and lowered the price target from $43.00 to $35.00. BMO Capital Markets commented, "BMO Research expects a rebound in met coal pricing, which would potentially benefit Walter, but the company faces a near-term headwind given relatively high financial leverage and falling margins. Walter typically trades above the group due to its value as a pure-play met coal company and persistent takeover speculation. BMO Research also expects Walter's premium to continue, but the current valuation appears to adequately reflect that premium." Walter Energy closed at $31.66 on Friday.