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UPDATE: Goldman Sachs Reiterates on Walter Energy on Recent Pullback in Commodity Pricing

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In a report published Wednesday, Goldman Sachs analyst Neil Mehta reiterated a Neutral rating on Walter Energy (NYSE: WLT), but lowered the price target from $18.00 to $16.00.

In the report, Goldman Sachs noted, “We now assume a slightly lower EV/EBITDA multiple on normalized earnings for WLT, using $175/MT met coal prices and a 7.5x EV/EBITDA (versus 7.75x previously), given the recent pullback in commodity pricing. We also remain below consensus on WLT, but stay Neutral-rated given (1) the potential for asset sales, per management commentary, (2) expectations for an improvement in met coal prices and (3) high levels of short interest.”

Walter Energy closed on Tuesday at $14.13.

Latest Ratings for WLT

DateFirmActionFromTo
Oct 2014BB&T CapitalDowngradesHoldUnderweight
Oct 2014FBR CapitalMaintainsMarket Perform
Oct 2014Bank of AmericaMaintainsUnderperform

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Posted-In: Goldman Sachs Neil MehtaAnalyst Color Price Target Analyst Ratings

 

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