UPDATE: Macquarie Capital Reiterates Outperform Rating, Raises PT on Cloud Peak Energy as Reduced Natural Gas Volatility Brings PRB Pricing Power

In a report published Tuesday, Macquarie Capital analyst Luke McFarlane reiterated an Outperform rating on

, and raised the price target from $18.00 to $19.00. In the report, Macquarie Capital noted, “We increase CLD's TP to $19, from $18, and it remains our Top Pick. We continue to view CLD as the safe haven in the group, with every $1/t move in PRB potentially impacting 2014 earnings by ~25-cents per share or ~30%. It is interesting that even CLD will likely opt to carry 0-10% of unpriced tons into 2014, different from prior years, giving management enough surety around its cost base while still providing some pricing upside potential.” Cloud Peak Energy closed on Monday at $16.44.