BMO Capital Lowers PT To $55 On ANR To $55

BMO Capital Markets, in light of the company's updated guidances, has lowered its price target from $65 to $55 on Alpha Natural Resources ANR. Says BMO, in its report, “Alpha reported adjusted Q2/11 EPS of US$0.96, below the Street's US$1.12 estimate. Guidance for FY2012 met coal volumes of 23–26Mt was down slightly from 24–26Mt (previous FY2012 met coal guidance for ANR/MEE combined). Expected FY2011 PRB sales are 48–50Mt down from 48–52Mt, with costs up ~3% from previous guidance. Eastern cost guidance is up ~10% from previous guidance (previous guidance did not include MEE). The synergy estimate for the Massey acquisition is now US$220–260M, up from US$150M.” ANR closed on Friday at $32.31.