We are reiterating our Buy recommendation on Walter Energy (WLT), and are raising our target price to $39.00 per share from $32.00 per share.
Although the weak steel market will adversely impact earnings in 2009, it will still realize favorable margins relative to other domestic coal producers, as it produces some of highest quality low-vol. met coal in the world.
We believe that the company’s shift to a pure-play natural resource/energy increases shareholder value as we are bullish on the
long-term coal supply and demand story.Zacks Investment Research
