NEW YORK (TheStreet) -- Alpha Natural Resources (ANR) shares are down -3.7% to $3.61 on Monday after a Deutsche Bank (DB) downgrade of Peabody Energy (BTU) sent a ripple effect across coal stocks.
The firm downgraded to company to "hold" from "buy" while lowering its price target to $19 from $23 due to "lower realized coal prices (particularly metallurgical coal) and anticipated ongoing cost pressures in foreseeable future...Considering a more muted outlook for metallurgical coal prices (albeit improving over time), Peabody's Australian segment profitability was reduced."
Walter Energy (WLT) shares are down -4.6% to $6.03 and Arch Coal (ACI) shares are down -3.8% to $3.49 today.
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TheStreet Ratings team rates ALPHA NATURAL RESOURCES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALPHA NATURAL RESOURCES INC (ANR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."