Dahlman Rose Reiterates Buy Rating on Walter Energy (WLT)

Dahlman Rose & Co. is out with a research report this morning, where it reiterates its Buy rating on Walter Energy Inc. WLT; it has a $110.00 price target on the stock. The DR analysts cited the company's recent announcement that it would be acquiring a 20% stake in Canadian metallurgical coal producer Western Coal. Walter also submitted a $11.50/share proposal for all of Western subject to a 2-week due diligence period. The analysts said, “The deal would give Walter more direct access to met coal markets throughout the world. Western Coal offers significant exposure to Asia markets, diversifying Walter away from its European and Brazilian customers and its two Alabama longwall operations. WTN has operations in British Colombia, West Virginia, and the UK.” Dahlman sees the deal as a long-term positive.