International Coal Earnings In Line With Estimates, Dahlman Rose Reiterates Buy (ICO)

Dahlman Rose analysts Danial Scott and Chris Turnure reiterated a Buy rating after International Coal ICO posted in-line results. ICO reported adjusted EBITDA of $55 million versus $53 million consensus. The analysts said, "International Coal recorded another solid performance in 2Q10 which included the generation of strong free cash flow and completion of the company's debt repurchase. The controlled cost inflation estimated by management is a function of lower underground mining exposure than Appalachian peers as well as the relatively lower regulatory vulnerability of the new mines in ICO's portfolio. We continue to believe the company is well positioned to benefit from improving thermal markets and positive long-term metallurgical coal fundamentals." Dahlman Rose has a $9 price target for International Coal. Shares of ICO are currently trading at $4.49.