Alliance Resource Partners (Nasdaq:ARLP) should enjoy a rebound in 2011 says Barclays (NYSE:BCS), who raised the price target on the coal miner while maintaining their "Equalweight" rating on the company.
Barclays said, "Alliance Resource Partners reported 3Q10 earnings per unit of $1.48 vs. the consensus estimate of $1.69/unit and our estimate of $1.67/unit. The miss was driven in part by lower than expected coal volumes in Northern and Central Appalachia due to the heightened regulatory environment together with higher operating costs due to the ongoing ramp up of the River View mine...Our new $62 target price assumes a 6.5% yield on our 2012 distribution estimate of $4.00 per unit. Our prior price target of $55/unit assumed a 7.3% yield on our 2012 distribution estimate of $4.00 per unit."
Barclays did lower their earnings per share estimate on Alliance from $6.90 to $6.70 a share, but increased it significantly for full year 2011 from $5.70 to 6.75.
Alliance closed Monday at $59.45, gaining $0.61, or 1.04 percent. Barclays increased their price target on the company from $55 to $62.
Showing posts with label Alliance Resource Partners. Show all posts
Showing posts with label Alliance Resource Partners. Show all posts
Tuesday, November 2, 2010
Friday, October 15, 2010
Wells Fargo (NYSE:WFC) on Penn Virginia (NYSE:PVR) Alliance (Nasdaq:ARLP) and Oxford Resource (NYSE:OXF)
Commenting on Coal MLPs, Wells Fargo (NYSE:WFC) took a quick look at Penn Virginia Resource Partners, L.P. (NYSE:PVR), Alliance Resource Partners, L.P. (Nasdaq:ARLP), and Oxford Resource Partners, L.P. (NYSE:OXF).
"We are increasing valuation range for Penn Virginia Resource Partners, L.P. to $24 to $26 from $23 to $25. We are downgrading Alliance Resource Partners, L.P. to Underperform from Outperform based on valuation. Our top Outperform pick in this subsector is Oxford Resource Partners, L.P," said Wells.
Penn Virginia Resource Partners, L.P. closed Thursday at $26.05, losing $0.03, or 0.12 percent. Alliance Resource Partners ended the session at $60.86, losing $0.64, or 1.04 percent. Favorite Oxford Resource Partners, L.P. ended the day up at $21.33, gaining $0.42, or 2.01 percent.
"We are increasing valuation range for Penn Virginia Resource Partners, L.P. to $24 to $26 from $23 to $25. We are downgrading Alliance Resource Partners, L.P. to Underperform from Outperform based on valuation. Our top Outperform pick in this subsector is Oxford Resource Partners, L.P," said Wells.
Penn Virginia Resource Partners, L.P. closed Thursday at $26.05, losing $0.03, or 0.12 percent. Alliance Resource Partners ended the session at $60.86, losing $0.64, or 1.04 percent. Favorite Oxford Resource Partners, L.P. ended the day up at $21.33, gaining $0.42, or 2.01 percent.
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