Arch Resources price target lowered to $185 at Jefferies after bridge collapes

Jefferies analyst Christopher LaFemina lowered the firm’s price target on Arch Resources to $185 from $190 and keeps a Buy rating on the shares following this morning’s tragic bridge collapse in Baltimore. The Port of Baltimore ships about 22M tons of coal per year, of which 7M-8M tons is met coal, and Arch exports about 4.5M tons of met coal per year via Curtis Bay, the analyst tells investors. While acknowledging that the supply shock should be supportive of met coal prices, the firm lowered its Arch estimates based on reductions to its forecasts for shipments.