Jefferies Maintains Buy on Alpha Natural Resources (ANR)

Jefferies is out with its report today on Alpha Natural Resources ANR, maintaining Buy after Alpha Natural agreed to acquire Massey Energy MEE. In its note to clients, Jefferies writes, "We believe Alpha Natural Resources' purchase of Massey Energy appears fairly valued and provides strategic rationale for each. Alpha Natural Resources' diverse geographic presence, numerous small deep mines, blending capabilities, export capacity and a metallurgical coal focus, are complementary to Massey Energy's Central Appalachian assets, blending capabilities, international relationships, and a strong metallurgical focus. Our $80 PT reflects an EV/EBITDA of 6.7x our 2012 forecasted EBITDA of $1.50B, valuation within historical range." Shares of ANR are trading pre-market at $53.58, down 7.43% from Friday's close.