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.”
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Read More on ARCH:
- Merger Uncertainty: Potential Risks and Impacts on Arch Resources and CONSOL
- Arch Resources Reports Q3 Results Amid Strategic Merger
- Arch Resources reports Q3 EPS (34c), consensus $1.83
- Arch Resources, Inc. (ARCH) Q3 Earnings Cheat Sheet
- Arch Resources, Consol Energy announce expiration of HSR Act waiting period
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