#116929
Re: Cobas AM: Nueva Gestora de Francisco García Paramés
Warrior Met extends selloff after Raymond James' dismal view on coal
- Shares of coal producers are taking their lumps as Raymond James analyst Lucas Pipes says the companies likely will be hurt by China's recently announced carbon reduction initiatives.
- Warrior Met Coal (HCC -5.5%) trades sharply lower for a second straight day after a 6.5% shellacking, as Pipes downgrades shares to Neutral from Buy and cuts his price target to $22 from $28, warning "Chinese Carbonomics" could serve has a "modest headwind" to coal pricing.
- Pipes notes China has announced various carbon reduction initiatives in recent weeks and months that "have the potential to upend the conventional wisdom in the metals and mining industry" of nearly 20 years.
- Other coal companies Piper covers, shares of Arch Resources (ARCH-3.5%), Alliance Resource Partners (ARLP -4.7%), Alpha Metallurgical Resources (AMR -8.5%) and Consol Energy (CEIX -7.2%) all trade sharply lower.
- ETF: KOL
- Warrior Met Coal's revenue and net income should return to normal in 2021, but the shares are richly priced, Patrick Doyle writes in a neutral analysis posted on Seeking Alpha.
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