Arch Coal, Inc "A Top Pick"

Arch Coal, Inc ACI analyst day creates speculation for a significant stock price appreciation. FBR Capital Markets recommends Arch Coal as their Top Pick. FBR in a research report writes, "The company has been transformed over a long time to a low-cost, safe steam and met coal mining company. While the stock has not been rewarded for its underutilized capacity and short-term contracting strategy yet, we believe the company is on the cusp of generating solid rates of return above its cost of capital" Looking forward ACI has tremendous upside growth potential. FBR writes, "With the recent rally in the broader market, we believe the coal group has about 25% upside; however, multiples need to roll forward in two months, which could add another 15% upside." ACI closed Friday at $26.24