UPDATE: Citi Initiates Walter Energy at Buy

Citi is out with its report today on Walter Energy WLT, initiating WLT at Buy. In a note to clients, Citi writes, "We are initiating coverage of Walter Energy with a Buy/High Risk rating and $144 target price based on our positive outlook for met coal and expect the current market deficit to continue into the foreseeable future. The company has organic growth at Mine #7 and the Western Coal purchase adds scale and geographic diversification. Deeply discounted multiples should unwind as the company deleverages and successfully integrates WTN." At the time of posting, shares of WLT were trading pre-market at $116.90, up 5.37% from Friday's close.