It was just on Friday that we signaled that the Arch Coal Inc. (NYSE: ACI) share price reaction to its earnings report may have marked a bottom in the coal sector. The reality is that the report was dismal. It was just less dismal than what analysts and investors were expecting. Management even was able to maintain that some positives were there and that exports may save the day ahead. Now on Monday comes two analyst upgrades.
We have seen that a small form called Global Hunter Securities has lifted its rating to Buy from Neutral after the report. Another analyst upgrade came from Stern Agee, which also took a Neutral rating up to a Buy rating with a $15 price target objective. Meanwhile, Jefferies has maintained its Buy rating but it did lower its price target to $12 from $18
Arch Coal shares are down from prior highs even if they are up on the day. The gain of 0.4% at $6.83 compares to a high of $7.20 this morning and compares to a 52-week range of $5.16 to $26.50.
The Market Vectors Coal ETF (NYSEMKT: KOL) is down 0.4% at $23.15 on the day so far. Maybe coal’s demise has gone far enough even if some of the share price gains may have to drift a bit lower as bottom-fishers take some short-term profits.
JON C. OGG