Jefferies Maintains Buy on Massey Energy (MEE)

Jefferies is out with its report today on Massey Energy MEE, maintaining Buy and a $70 price target after MEE agreed to be acquired by Alpha Natural Resources ANR. In its note to clients, Jefferies writes, "On Saturday afternoon, Alpha Natural Resources and Massey Energy confirmed a negotiated merger transaction that values Massey at $69.33 per share. Each Board supports the deal, which could close by mid-year. We believe the price appears fair given our $70 per share price target for Massey Energy. We support the transaction and the significant long-term earnings power. The US coal industry has been increasingly focusing on serving global utility and steel customers as domestic coal demand growth flattens." Shares of MEE are trading pre-market at $62.63, up 9.44% from Friday's close.