NEW YORK (AP) ¿ An analyst initiated coverage of James River Coal Co. with a top rating Thursday, citing the company's potential to be bought and strong coal contracts. Dahlman, Rose & Co. analyst Daniel W. Scott rated the Richmond, Va., company a "Buy" with a $28 price target, implying he expects the stock to jump 25 percent from Wednesday's $22.40 close. When coal prices rose last summer, James River set contracts with market-high prices, a move that the company is hoping will support future earnings, Scott said. Since the company is a relatively small coal producer compared with its peers, has a small market cap and doesn't have a unionized work force, it could be seen as an "attractive target" by larger competitors, he said. "We believe that the company's attractive contract position and takeout potential more than offset concerns about lower liquidity levels, lower reserves and lack of metallurgical coal exposure," Scott said in a note to clients. Shares of James River rose 10 cents to $22.50 in early morning trading. The stock has traded between $5.05 and $62.83 in the past 52 weeks.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Technology
MoneyGram Soars on $50M Investment From Blockchain Startup Ripple
Shares of MoneyGram soar after blockchain startup Ripple, the company behind the XRP cryptocurrency, says it plans to invest up to $50 million in the company.
Libra: What You Need to Know About Facebook's New Cryptocurrency
Facebook's first blockchain-backed payment initiative is here. Here's what investors and crypto enthusiasts need to know.
Fed Watch Begins: Jim Cramer Talks Jerome Powell and Facebook's Cryptocurrency
Jim Cramer tackles what he is expecting from the Federal Reserve, Facebook's official launch of Libra and what he's keeping an eye on in the markets.
Draghi's Silver Tongue, Heeding Lockheed Martin and Awaiting Adobe: Market Recon
The ECB president speaks of more stimulus, more head-butting with Iran should help defense stocks, and how to play Adobe in advance of earnings.