In a report published Tuesday, Stifel analyst Paul Forward reiterated a Buy rating on Cloud Peak Energy Inc CLD, but lowered the price target from $22.00 to $20.00.
In the report, Stifel noted, “We attribute the weakness in U.S. coal to several factors: persistently low international pricing for both thermal and metallurgical coal; a strong rebuild in depleted natural gas storage levels from April to September, aided by a mild U.S. summer; congestion on U.S. railroads since late 2013 that negatively impacted coal shipment volumes, and high debt levels among several U.S. coal producers. Following the recent selloff in coal names, Cloud Peak stands out to U.S. as interesting at these levels, as it operates three of the top six U.S. coal mines and totaled 8.4% of the U.S. coal supply in 2Q14. At a market cap of $770 million and an enterprise value of $1.1 billion, Cloud Peak is a heavyweight energy producer with a flyweight valuation, in our view.”
Cloud Peak Energy Inc closed on Monday at $12.64.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in