Scotia Capital Has Sector Perform On Walter Energy

Scotia Capital is out with a research report on Walter Energy WLT and it has a Sector Perform rating and a $150 price target on shares. In a note to clients, Scotia Capital writes, "Potential for acquisition. Although we continue to believe that WLT would be a significant transaction for all but the largest global miners, we expect that Anglo American would be the most likely acquirer given Anglo's recent re-commitment to the Peace River region and its recent leadership in benchmark price negotiations and settlements. Audley believes that Walter Energy is trading at a discount to both domestic and global peers. Walter Energy closed on Friday, July 15 at US$110.94, well below our US$150.00 target. On a consensus basis, Walter trades 4.2x current-year EV/EBITDA (average of peers is 6.6x) and 3.7x next-year EV/EBITDA (average of peers is 5.0x)." Shares of WLT closed at $121.37 yesterday.