UPDATE: Goldman Sachs Initiates SunCoke Energy at Neutral

Goldman Sachs is out with its report today on SunCoke Energy SXC, initiating SXC at Neutral. In its report, Goldman Sachs writes, "We view the SXC business mix favorably as: (1) it provides coal/energy investors with a defensive investment alternative, as SXC derives the majority of its EBITDA from met coke via take-or-pay contracts with limited volume or pricing risk; (2) it has superior, relatively low-risk long-term EBITDA growth primarily driven by two coke capacity expansions; and (3) we see the potential for further upside from domestic and international coke expansions not in our estimates or valuation. However, we initiate with a Neutral rating as we see more attractive upside and near-term company-specific catalysts for Buy-rated BTU BTU and CNX CNX." Goldman Sachs has an $18 PT on SXC. Shares of SXC closed Monday at $14.28, up 2.73% from Friday's close.