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Alpha Metallurgical Resources (NYSE:AMR) -2.4% in Monday’s trading after Cowen downgraded the stock to Market Perform from Outperform with a $194 price target, citing valuation after surging nearly 40% since the end of May.
Weaker than expected global economic growth has muted demand for finished steel products, resulting in pressure on coking coal indices that have continued their downward trend coming off the highs of last year, Cowen analyst Lance Vitanza said.
Alpha (AMR) has “done an excellent job managing met coal price compression while returning cash flows to shareholders on an expedited yet prudent basis,” Vitanza wrote, expecting more of the same going forward but nevertheless downgrading the stock “as the discount between share price and intrinsic value per our DCF analysis has closed considerably.”
