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Arch Coal Inc. Message Board

  • go4invest go4invest Aug 28, 2013 9:30 AM Flag

    Outperform rating at FBR Capital;$6 PT

    FBR Capital resumes coverage on Arch Coal Inc (NYSE: ACI) with a Outperform rating and $6 price target after the company closed the divestiture of its Canyon Fuel subsidiary to Bowie Resources for $423M in net proceeds.

    "More importantly, we reiterate our investment thesis on ACI, as we continue to believe that the company has done a good job of extending debt maturities to wait for improvement in coal markets and selectively trimming the asset portfolio to opportunistically de-leverage the balance sheet," analyst Mitesh Thakkar states. "With the completion of the divestiture, Arch Coal has a pro forma cash balance of $1.3B (including marketable securities), a majority of which could be used to pay down debt once coal markets stabilize and ACI resumes free cash flow generation."

    Sentiment: Hold