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Walter Energy weakness an overreaction, says Davenport

Davenport said Walter Energy weakness related to the cancellation of a portion of its existing debt is an overreaction. The firm believes the cancellation is due to less favorable credit markets recently and not a sign the company was unable to secure a refinancing deal The analyst expects and believes the company will be able to amend financial covenants on existing bank debt and which will allow the company additional time to refinance. Shares are Buy rated with a $30 price target.