Analyst Upgrades Alpha Natural Rating On Purchase

DENVER (AP) — Shares of Alpha Natural Resources Inc. rose Friday after an analyst upgraded his rating on the coal producer because of its plan to purchase Foundation Coal Holdings Inc. for $1.4 billion in stock.

In a research note, Goldman Sachs analyst Brian Singer also raised a target price for both Arch Natural and Foundation Coal and maintained Foundation's "Buy" rating.

The acquisition, if completed, would give Alpha Natural more diversified assets, improve growth opportunities and be accretive to cash-on-cash returns of both companies, Singer said. ...