In a report released today, Lucas Pipes from B.Riley FBR reiterated a Buy rating on Arch Coal Inc (ARCH), with a price target of $126. The company’s shares closed on Friday at $90.22.
Pipes observed:
“We are updating our estimates for Arch Coal (ARCH) ahead of 2Q19 results, scheduled to be released on the open. We are lowering our EBITDA estimate from $108M to $95M, slightly below the consensus of $98M on lower volumes and higher costs in the PRB, as well as slightly higher costs and lower volumes in the met coal segment. We anticipate that Arch will maintain its 2019 annual guidance of 6.6M-7.0M tons of met coal and but expect potential changes to thermal coal guidance on subdued domestic consumption year-to-date. We are already modeling thermal volumes at the low end of the range of 80M-85M tons for 2019. For 2Q19, we are modeling 1.55M tons of met coal tons sold, with an average realized price of $127.13/ton and CAPP cash casts of $66.72/ton (versus $67.27/ton in 1Q).”
According to TipRanks.com, Pipes is a 1-star analyst with an average return of -0.8% and a 44.5% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Covia Holdings Corporation.
Currently, the analyst consensus on Arch Coal Inc is a Moderate Buy with an average price target of $123.67.
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The company has a one-year high of $101.92 and a one-year low of $75.52. Currently, Arch Coal Inc has an average volume of 221.6K.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is negative on the stock.
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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.
