Citing probably operational inconsistency based on rising costs and geological conditions, Patriot Coal (NYSE:PCX) had their "Market Perform" rating maintained on them by FBR Capital.
"We are lowering our 2011 and 2012 estimates on Patriot Coal by an average of 4% and keeping our 4Q10 estimates unchanged after the company announced lower-than-expected 3Q10 earnings and steam coal sales outlook yesterday. However, we boosted our 2011 met coal volume slightly as the company laid out its growth pipeline and highlighted multiple levers it can pull to achieve that growth. While we like the progress made by PCX as it builds out its met production and opportunistically locks in favorable contracts, we continue to be concerned about tough geological conditions and rising costs, which create operational choppiness," said FBR.
Patriot was down $0.18 Friday, closing at $12.81, losing 1.39 percent percent. FBR has a price target of $18 on them, increasing it from $16.
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