Brean Murray initiated coverage on a number of coal stocks, including Cloud Peak Energy (NYSE:CLD), International Coal Group (NYSE:ICO), Alpha Natural Resources (NYSE:ANR) and Massey Energy (NYSE:MEE).
Alpha Natural Resources is the top pick in the sector, with Massey coming in right behind them said Brean.
Coud and International Coal were started off with a "Hold," while Massey was initiated with a "Buy."
Brean said, "While Alpha Natural Resources (NYSE:ANR) is our official top pick, we'd have to say Massey is a close second. In our view, the regulatory pressures are largely priced into the stock, so that the risk-reward balance is now favoring investors who own the stock, in our view. The company's growing met coal exposure and leading Central Appalachian position make its assets among the most attractive in our universe."
Massey was among the top performers Wednesday, closing at $33.82, gaining $1.94, or 6.09 percent. Brean has a price target of $39 placed on them.
No comments:
Post a Comment