UPDATE: Raymond James Upgrades Alpha Natural Resources to Market Perform on Improved Cost/Liquidity Outlook

In a report published Friday, Raymond James analyst James M. Rollyson upgraded the rating on

from Underperform to Market Perform. In the report, Raymond James noted, “After focusing on cost cutting initiatives over the past 18 months, Alpha announced a further planned $200 million reduction to costs with its 2014 guidance. If achieved, it represents a swing to free cash flow positive in 2015, under our current met price assumption of $170/mt. Given its current liquidity position, reduced financial covenants through 2016 and improved cost outlook, we are upgrading ANR to Market Perform from Underperform. We still want to get better visibility on a met pricing recovery before getting more constructive, with a keen eye on China's sustainability and recovery in Europe/Latin America.” Alpha Natural Resources closed on Thursday at $7.00.