Citi downgraded Arch Resources (ARCH) to Neutral from Buy with a price target of $170, down from $185. The stock is currently trading at an 11% free cash flow yield on $250 per ton hard coking coal, which represents fair value. The firm now sees equal upside and downside risks. Its preference for met coal exposure is Warrior Met Coal (HCC), which it notes is trading at a 17% yield post Blue Creek, which will start to be delivered in 2024.
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Read More on ARCH:
- Arch Resources price target lowered to $193 from $198 at B. Riley
- Arch Resources price target raised to $185 from $160 at Citi
- Arch Resources downgraded to Market Perform from Outperform at BMO Capital
- Arch Resources price target lowered to $185 at Jefferies after bridge collapse
- Arch Resources price target lowered to $185 at Jefferies after bridge collapes
