Citigroup Inc. restated their buy rating on shares of Walter Energy (NYSE:WLT) in a report issued on Thursday, Analyst Ratings Network.com reports. They currently have a $20.00 target price on the stock, up from their previous target price of $16.00.
“After completing the $450 mln senior secured bond deal and repaying $250 mln in Term-Loan A debt through a Dutch Auction and updating our model for 3Q average coal and natural gas prices, we are lowering our estimate for 3Q operating EPS to -$1.01 from -$0.85 and vs. consensus of -$1.01 on EBITDA of $17 mln and revenue of $447 mln. In addition, our lower natural gas price forecasts of $3.75/$4.40 in ’14/’15 and higher interest expense associated with the new 9.5% notes reduce our EPS estimates for 2013 to -$2.86 from -$2.45, 2014 to -$1.25 from -$0.85 and 2015 to -$0.50 from $0.00. We are maintaining our Buy (1) rating and raising our target price to $20 to reflect the potential for asset sales/JVs to accelerate cash flows and allow for a more rapid de-leveraging which could help to ease high balance sheet risk.,” Citigroup Inc.’s analyst wrote.
Walter Energy (NYSE:WLT) opened at 15.21 on Thursday. Walter Energy has a 52 week low of $9.88 and a 52 week high of $41.32. The stock’s 50-day moving average is $14.46 and its 200-day moving average is $15.05. The company’s market cap is $951.8 million.
Walter Energy (NYSE:WLT) last announced its earnings results on Thursday, August 1st. The company reported ($0.55) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.75) by $0.20. The company had revenue of $441.50 million for the quarter, compared to the consensus estimate of $472.88 million. During the same quarter in the prior year, the company posted $0.43 earnings per share. The company’s quarterly revenue was down 34.8% on a year-over-year basis.
WLT has been the subject of a number of other recent research reports. Analysts at RBC Capital raised their price target on shares of Walter Energy from $16.00 to $17.00 in a research note to investors on Friday, October 11th. They now have a sector perform rating on the stock. Finally, analysts at Goldman Sachs Group Inc. upgraded shares of Walter Energy from a sell rating to a neutral rating in a research note to investors on Friday, September 27th. They now have a $15.00 price target on the stock, up previously from $10.00. Three analysts have rated the stock with a sell rating, twelve have assigned a hold rating and seven have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $26.65.
Walter Energy, Inc, is a producer and exporter of metallurgical coals for the global steel industry. The Company also produces thermal coal and industrial coal, anthracite, metallurgical coke, coal bed methane gas (NYSE:WLT) and other related products.
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