Arch Resources price target lowered to $170 from $175 at BMO Capital

BMO Capital lowered the firm’s price target on Arch Resources to $170 from $175 but keeps an Outperform rating on the shares. The analyst cites the company’s negative update for Q3 and reduced FY23 met coal expectations on lower expected met coal volume and higher costs given slower-than-expected ramp at Leer South. The update was disappointing, but with met coal prices starting to recover late in the quarter and with pricing strength continuing, Arch Resources is well positioned to continue generating solid free cash flows, the firm tells investors in a research note.