Walter Energy Started as a “Buy” at Deutsche Bank (WLT)

Filed in dividend, Gold Investment, lead, o, shares, target by on January 11, 2011 0 Comments

Coal producer Walter Energy, Inc. ( WLT ) on Tuesday saw its coverage initiated with a “Buy” rating by analysts at Deutsche Bank. The firm also set a $162 price target on WLT, which implies a healthy 23% upside to the stock’s Monday closing price of $141.93. A Deutsche analyst commented, “The company is a leading exporter of met coal, with ~6m tons exported in 2009 and ~7m in 2010e. As well, it produces steam coal, natgas, coking coal and other products. Walter operates three key segments — Underground Mining (met coal), Walter Coke (coke), and Surface Mining (thermal coal). In April 2010, WLT announced several growth initiatives that aim to purchase new coal and natgas reserves, as well as expand existing projects. In November 2010, it announced the acquisition of Western Coal, a Canada-based met coal supplier that services the Asia-Pacific basin. Excluding contribution from Western Coal, we estimate that coal sales could reach 11m tons by 2012 from 7.5m tons in 2009, as the company has embarked on aggressive expansion plans. Additionally, we estimate that WLT could see 11 bcf in natgas production by 2012 from 6 bcf in 2009.” Walter Energy shares rose $2.07, or +1.6%, in premarket trading Tuesday. The Bottom Line We have been recommending shares of Walter Energy (

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Walter Energy Started as a “Buy” at Deutsche Bank (WLT)

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