Deutsche Bank Initiates PCX And WLT At Buy; Downgrades ACI To Hold

Deutsche Bank is initiating coverage of Patriot Coal Corporation PCX and Walter Energy, Inc. WLT at Buy, and is downgrading Arch Coal, Inc. ACI to Hold from Buy on valuation & DBe vs. consensus. “Overall, we favor NA coal companies with exposures to the metallurgical (met) coal market that are reasonably valued,” Deutsche Bank writes. “The addition of Massey Energy, Patriot Coal, and Walter Energy solidifies our Coal coverage universe, and leads us to cover more than 51% of 2010 US coal production.” Patriot Coal Corporation currently trades at $25.19; Walter Energy trades at $138.14; and Arch Coal trades at $35.80.