Market Overview

Walter Energy, Inc. Falls Amid Morgan Stanley Downgrade


Walter Energy, Inc. (NYSE: WLT) was downgraded from Overweight to Equal-weight with the price target lowered from $16 to $4 in a report issued by Morgan Stanley.

Analysts led by Evan L. Kurtz explained that "while evidence points to a bottom for [metallurgical] coal prices, the recovery will likely take longer and be weaker than our previous forecasts."

The downgrade came as a result of recovery timing for liquidity constrained metallurgical coal producers. "At the current $119/ton benchmark price," Kurtz estimated "that Walter has sufficient liquidity through 2015. However, the uncertain timing and magnitude of a price recovery leaves an insufficient margin of safety to remain Overweight Walter."

The report concluded that while Walter remains an option, Kurtz preferred Peabody from a risk-reward perspective with a more diversified business.

On October 2, Walter Energy shares surged on acquisition rumors but have since fallen.

Walter Energy Inc. recently traded at $1.76, down 9.3 percent.

Latest Ratings for WLT

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

View More Analyst Ratings for WLT
View the Latest Analyst Ratings


Related Articles (WLT)

View Comments and Join the Discussion!

Posted-In: Evan L. Kurtz Morgan StanleyAnalyst Color Downgrades Price Target Analyst Ratings Movers

Latest Ratings

PMTB of A SecuritiesMaintains18.5
IVRB of A SecuritiesMaintains3.0
EFCB of A SecuritiesMaintains15.5
NYMTB of A SecuritiesMaintains3.5
NLYB of A SecuritiesMaintains8.5
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