) --

Walter Energy


shares were soaring Tuesday by more than 15% to $13.47 on more than double its average three month trading volume as bullish sentiment continued to pour in following a

Morgan Stanley

report reassuring investors that this metallurgical coal producer has more than ample upside potential following its dramatic plunge Friday.

Analysts Evan Kurtz, Alexander Levy and Marcus Lindberg published a note Monday saying that they think the stock will be able to rise another 200%, following its steep declines Friday that saw shares plunge 17% to a four-year low of $11.76, as metallurgical coal prices stabilize following their deterioration and the company demonstrates that it's able to work out debt covenant relief with its banks while maintaining sufficient liquidity.

On Friday the stock dropped as the company confirmed reports that it had to withdraw $1.55 billion in credit refinancing plans due to unfavorable market conditions ahead of the 2015 maturity of the company's $494 million in term loans.

The analysts wrote that they expect to keep their upside predictions for the company even if it were to pursue an equity sale and share dilution were to ensue. The company has already been adamant about not pursuing such a deal.

The analyst team has an overweight rating on Walter Energy with a price target of $47.

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Written by Andrea Tse in New York

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Andrea Tse