In a report released today, Lucas Pipes from B.Riley FBR reiterated a Buy rating on Alliance Resource (ARLP), with a price target of $26. The company’s shares closed yesterday at $19.27.
Pipes noted:
“Partners (ARLP) reported 1Q19 results of $188.8M in adjusted EBITDA. Compared to our estimate of $169.5M, Alliance beat on higher volumes and realized prices at its APP operations. This was partially offset by lower sales in the Illinois Basin which faced shipment delays due to flooding. While the company maintained its FY19 guidance, management noted that results could fall towards the lower end of the guidance range. This is due to industry-wide demand weakness in the seaborne thermal coal markets. As a result of this weakness, management has temporarily delayed the ramp-up of Illinois Basin capacity which could impact full-year sales by approximately 1M tons.”
According to TipRanks.com, Pipes is a 3-star analyst with an average return of 1.6% and a 49.4% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and CONSOL Coal Resources LP.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Alliance Resource with a $26 average price target.
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Alliance Resource’s market cap is currently $2.47B and has a P/E ratio of 7.04. The company has a Price to Book ratio of 2.09.
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Alliance Resource Partners LP produces and markets coal to United States utilities and industrial users. It operates through the following segments: Illinois Basin, Appalachia, and Other and Corporate.
