In a report released today, Lucas Pipes from B.Riley FBR maintained a Buy rating on Arch Coal Inc (ARCH), with a price target of $125. The company’s shares opened today at $91.30.
Pipes noted:
“Last week, we hosted investor meetings for Arch Coal. John Drexler (Senior Slone (Senior Policy) represented the company. During the investor meetings, Arch management emphasized the strategic importance of the Leer South project. The mine is expected to produce 3M tons of HVA annually at an average cash cost per ton in the low $50s. Notably, the favorable economics of Leer South should lower Arch’s total met coal cash cost per ton from $63.50 to ~$60/ton. In addition, Arch highlighted the favorable long-term fundamentals in the seaborne met coal industry. Management is projecting 334M metric tons of demand by 2025.”
According to TipRanks.com, Pipes is a 2-star analyst with an average return of 0.1% and a 46.9% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, CONSOL Coal Resources LP, and Teck Resources Limited.
Arch Coal Inc has an analyst consensus of Moderate Buy, with a price target consensus of $118.50.
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The company has a one-year high of $102.61 and a one-year low of $75.09. Currently, Arch Coal Inc has an average volume of 265.9K.
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Arch Coal, Inc. engages in the production and distribution of thermal coal. It operates through the following segments: Powder River Basin, Metallurgical and Other Thermal. The Powder River Basin segment contains thermal operations in Wyoming. The Metallurgical segment contains metallurgical operations in West Virginia.
