Alpha Natural Resources Rated Buy At Dahlman Rose After Earnings (ANR)

Dahlman Rose & Co. still rates shares of Alpha Natural Resources ANR a Buy with a $56 price target after the company reported earnings that were below estimates due to higher costs. In the report Dahlman Rose notes, "The current quarter demonstrated increased cost and volume volatility and highlighted dependence on consistent operations from the two major Eastern steam coal longwall mines. While these risks present some quarter-to-quarter uncertainty, we continue to believe the company's assets are well-positioned in both rising eastern steam coal and international metallurgical coal markets. More share buyback activity is expected after $25MM of repurchases in 2Q10, and management comments regarding international asset purchases or JVs continues to indicate the intention to deploy the $519MM in cash-on-hand. We are reiterating our Buy rating and $56 price target on ANR shares." Shares of Alpha Natural closed yesterday at $42.78.