Goldman Sachs (NYSE:GS) lowered its overall rating on the coal sector to "Neutral," saying their favorite in the segment is Peabody Energy (NYSE:BTU), which they retain a "Buy" on, and Consol Energy (NYSE:CNX), which also kept their "Buy" rating from Goldman on them.
In their report, Goldman said, "We see 13 percent upside to our target prices and believe a neutral coverage view is more appropriate."
Alpha Natural Resources (NYSE:ANR) had its rating slashed to "Neutral" by Goldman, while Massey Energy (NYSE:MEE), Arch Coal (NYSE:ACI) and Walter Industries (NYSE:WLT) all had "Neutral" ratings maintained on them.
The latter three were kept "Neutral," according to Goldman, until individual issues related to each company become clearer.
Goldman's preference for Peabody was based on its "organic growth options," and Console because of its "attractive low-cost asset mix and upcoming catalysts," according to the report.
The benchmark metallurgical coal estimate for 2012 was increased to $193 a metric done by Goldman, up from the prior projection of $175.
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