UPDATE: Deutsche Bank Lowers PT on James River Coal Company on 4Q EPS Loss
In a report published Monday, Deutsche Bank reiterated its Hold rating on James River Coal Company (NASDAQ: JRCC [FREE Stock Trend Analysis]), but slightly lowered its price target from $3.25 to $2.50.
Deutsche Bank noted, “JRCC reported 4Q adjusted EPS loss of $1.59, vs. DBe/ consensus of $1.19 loss / $1.41 loss and a loss of $1.23 loss in 3Q12. Adjusted EPS excludes 62c for goodwill impairment charge and a gain from the repurchase of outstanding debt. Following 4Q results, our forecasts have been lowered mainly to reflect lower forward shipments and we've have lowered our PT to $2.50 (was $3.25).”
James River Coal Company closed on Friday at $2.66.
Of course, this rating makes no sense. A price target drop of -23% from $3.25 to $2.50 is called "slightly lowered"? If they are lowering price target by -23%, why is it still a "Hold"? It should've been cut to "Sell".