Market Overview

UPDATE: Goldman Sachs Assumes Coverage on Arch Coal, Downgrades on Balance Sheet, Valuation, Price Outlook

Share:

In a report published Friday, Goldman Sachs analyst Neil Mehta assumed coverage on Arch Coal (NYSE: ACI), downgraded the rating from Neutral to Sell, and lowered the price target from $4.00 to $3.00.

In the report, Goldman Sachs noted, “We assume coverage of Arch Coal (ACI) at Sell, with a 6-month price target of $3, implying a -33% return vs. 7% for our coverage group. We are downgrading to Sell from Neutral given: (1) among the highest leverage ratios and lowest returns under our coverage, (2) valuations near historical peak levels, (3) a thermal outlook less bullish than consensus, as coal plant retirements and relatively low PRB pricing will likely weigh on earnings and (4) below-average earnings growth, even if met coal prices recover above our forecasts.”

Arch Coal closed on Thursday at $4.74.

Latest Ratings for ACI

DateFirmActionFromTo
Jan 2021Wells FargoDowngradesOverweightEqual-Weight
Jan 2021Morgan StanleyDowngradesEqual-WeightUnderweight
Jan 2021Credit SuisseMaintainsOutperform

View More Analyst Ratings for ACI
View the Latest Analyst Ratings

 

Related Articles (ACI)

View Comments and Join the Discussion!

Posted-In: Goldman Sachs Neil MehtaAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
LRCXKeyBancMaintains583.0
FBKeyBancMaintains360.0
CVLTKeyBancMaintains70.0
CLRKeyBancMaintains23.0
AZPNKeyBancMaintains158.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com