Analysts Saying Arch (and maybe coal sector too) Has Bottomed
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…
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
