Arch Resources downgraded to Hold from Buy at Jefferies

Jefferies downgraded Arch Resources (ARCH) to Hold from Buy with a price target of $165, up from $155. Shares have rallied about 20% over the last two weeks, with the “obvious catalyst” being the Trump victory, the analyst noted. While acknowledging Trump should be a net positive for domestic U.S. thermal coal producers, and Arch’s exposure to thermal coal will increase after the CONSOL merger closes, the firm argues there are key risks to consider as well and says Arch’s valuation “has become less compelling.”