FBR Capital Maintains "Outperform/Top Pick" on Arch Coal (NYSE:ACI)

After taking part in the analyst day for Arch Coal (NYSE:ACI), FBR Capital liked what they heard and said they're maintaining their "Outperform/Top Pick" rating on the company.

FBR said, "We attended the Arch Coal analyst day and came away with conviction in our thesis that Arch Coal is in position for significant stock price appreciation and an FBR Top Pick. The company has been transformed over a long time to a low-cost, safe steam and met coal mining company. While the stock has not been rewarded for its underutilized capacity and short-term contracting strategy yet, we believe the company is on the cusp of generating solid rates of return above its cost of capital."

Arch closed Monday at $25.94, down $0.30, or 1.14 percent.

FBR has a price target of $37 on Arch Coal.