Analyst Lowers Natural Resource Partners' Rating

DENVER (AP) — Shares of Natural Resource Partners LP fell Monday after a Citi Investment Research analyst downgraded his rating over concern the company may have to cut distribution as a result of weak coal contract pricing.

Natural Resource's stock price fell $1.50, or 7.5 percent, to $18.52 in midday trading. The company owns coal reserves and coal handling and transportation infrastructure in the three major coal producing regions.

Analyst John Tysseland downgraded the Houston-based firm to "Sell" from "Hold." He also reduced his per-share price target to $16.50 from $22.

"Our revised opinion reflects our concern that NRP may need to cut the distribution by as much as 20 percent next year — potentially sooner — as the outlook for contract coal pricing for 2010 remains weak," Tysseland wrote in a research note.

The analyst also lowered his earnings-per-share estimate to 68 cents from 92 cents in 2009 and to $1.22 from $1.51 in 2010.

Analysts surveyed by Thomson Reuters on average forecast earnings per share of $1.02 in 2009 and $1.26 in 2010.