Shares of Arch Coal hit a 52-week low on Thursday of $6.29. The stock's 52-week high of $30.29 was set one year ago."Following ACI's analyst day, despite the significant selloff in the shares (which in our view is overdone, especially given the recent credit facility alleviates near-term liquidity concerns), we continue to see a lack of near-term positive catalysts in the coal sector," Credit Suisse analysts wrote in a May 24 report. "Given our still cautious view on the thermal coal markets, softness in the high vol met market and possible goodwill impairments, we maintain our Neutral Rating. Our Target Price declines from $11 to $8, which represents 6.6x our 2013 EBITDA estimate." Arch Coal's forward P/E is 91.86; the average for coal companies is 16.69. For comparison, Consol Energy (CNX) has a lower forward P/E of 11.65. Fourteen of the 30 analysts who cover Arch Coal rated it hold. Eleven analysts gave the stock a buy rating and five rated the stock sell. The stock has fallen 55.55% year to date.
ArcelorMittal Shares of ArcelorMittal hit a 52-week low on Thursday of $13.62. The stock's 52-week high of $35.31 was set on July 1. "Our 12-month price objective is set at EUR20/sh (US$27/ADR)," Bank of America Merrill Lynch analysts wrote in a May 23 report. "Our price objective is based on 7x 2012E EBITDA, in line with ArcelorMittal's historical average EV/EBITDA multiple of 7x." ArcelorMittal's forward P/E is 4.76; the average for iron and steel companies is 6.79. Six of the eight analysts who cover ArcelorMittal rated it buy; two analysts gave the stock a hold rating. The stock has declined 23.8% year to date.
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