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
Top Rank Is Betting That ESPN+ Is the Future of Boxing
Top Rank President Todd DuBoef spoke with TheStreet ahead of Terence Crawford's title defense boxing match against Amir Khan on Saturday.
Lyft's Valuation Is Huge -- How Tech Stocks Soon to Go Public Are Valued
A venture capital investor says Lyft's valuation doesn't make any sense, but to some it does. Here's how.
Facebook's Voice Assistant Is Probably Meant for its Own Apps -- Tech Check
The social media giant is reportedly prepping a new voice assistant. It would make a lot sense for such an offering to focus on enhancing Facebook's apps and hardware than battling Alexa, Siri and Google Assistant head-on.