LATEST NEWS

Coal shares slip after Goldman Sachs downgrade

Coal shares fall after Goldman Sachs sees limited upside; Peabody downgraded

RELATED QUOTES

SymbolPriceChange
BTU2.070.00
CNX14.85-0.17
ANR0.26060.0000
WLT0.16440.0000

NEW YORK (AP) — Shares of coal producers fell on Wednesday after Goldman Sachs said the sector will struggle with weak demand and prices, and it downgraded Peabody Energy Corp.

Peabody was one of the biggest price decliners in percentage terms, falling $1.96, or 5.1 percent, to $36.28 in afternoon trading.

Goldman Sachs analyst Andre Benjamin wrote that it's unlikely that the coal sector will perform any better than other stocks because of flat U.S. heating prices, falling prices for coal, and lower volumes in the U.S., as well as continued cost pressures.

Goldman Sachs lowered its view on the sector to "neutral" from "attractive."

Benjamin wrote that demand is likely to be hurt by the impact of proposed federal regulations on coal plant emissions, lower gas prices next year and in 2013, and lower demand growth as customers become more energy-efficient. He expects coal prices to be stable in 2012 and to fall in 2013 and 2014 as growing supplies catch up with demand.

"We do not see U.S. prices, volumes or cost trends meaningfully improving," he wrote.

As for Peabody, it has suffered from investor sentiment that it is exposed to the global economy as well as a negative view of its recent acquisition of Macarthur Coal. Benjamin downgraded Peabody to "neutral," from "buy."

Benjamin said he has a positive view of Peabody's exposure to Asia, where coal demand is moving in a favorable direction. But he downgraded it because of what he sees as a more limited upside for the company.

Other coal shares that fell included Consol Energy Inc., down $1.08, or 2.7 percent, to $39.72; Alpha Natural Resources Inc., which fell 63 cents to $24.25; Walter Energy Inc., down $2.99, or 4.2 percent, to $69.12; and Arch Coal Inc., which fell 72 cents, or 4.4 percent, to $15.61.

Patriot Coal Cop. fell 42 cents, or 4.1 percent, to $9.91, and James River Coal Co. fell 32 cents, or 3.8 percent, to $8.13.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.

DON'T MISS

  • The Rs 80,000 crore milk business is on a tear

    If you thought that all the action in business was concentrated around the e-commerce sector, you could not be more wrong. The unlikely category of milk and dairy products has been seeing some of the most ... …

  • Charged up

    Reliance Jio's battle with other cellular operators over spectrum usage charges is set to escalate. …

  • Cracking the Code

    HackerRank is helping companies recruit coding champions through online tests. …

  • Poor Prediction

    A Niti Aayog presentation says poverty in India could be wiped out by 2032. Is it possible? …

  • Missing in Action

    Villages adopted by Gandhis make little progress. …

  • The VillageEconomy

    Inside: Model villages 68 / How India failed its poor 76 …

  • Hardly Adarsh

    Saansad Adarsh Gram Yojana, PM's pet project, has the potential to kick-start the rural economy, but is going nowhere if we go by the results so far. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    68.25+0.60+0.89%
    SPICEJET.BO
    739.90-7.35-0.98%
    HCLTECH.BO
    15.95-0.30-1.85%
    SUZLON.BO
    351.60-5.00-1.40%
    ITC.BO
    204.85+6.20+3.12%
    SBIN.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    20.59+3.43+19.99%
    FILTRA.BO
    86.15+14.35+19.99%
    GOKEX.BO
    13.22+2.20+19.96%
    GOKULAGRO.BO
    19.90+3.30+19.88%
    NHCFOODS.BO
    70.30+10.50+17.56%
    KOHINOOR.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    36.00-9.00-20.00%
    RJBIOTECH.BO
    54.80-13.30-19.53%
    SATHAISPAT.BO
    11.15-2.70-19.49%
    VIKASECO.BO
    58.40-11.70-16.69%
    SAMPRE.BO
    30.20-5.70-15.88%
    RTSPOWR.BO
  •  
    Recent Quotes
    Symbol Price Change % ChgChart 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
  • Recent Quotes News

    •  
      Sign-in to view quotes in your portfolios.