Share on StockTwits

Walter Energy (NYSE:WLT)‘s stock had its “neutral” rating reaffirmed by Zacks in a report issued on Monday. They currently have a $5.75 price objective on the stock. Zacks‘s price objective points to a potential upside of 4.74% from the stock’s previous close.

Zacks’ analyst wrote, “Walter Energy Inc. posted wider-than-expected loss in the first quarter of 2014 due to the prevailing soft coal market conditions in the U.S. The company underperformed primarily due to downward pressure in thermal as well as met coal prices. We believe Walter Energy’s cost-control initiatives and systematic idling of uneconomic mine operations in Canada will lead to stable margins in the upcoming quarters. In addition, the oversupply in global met coal market will gradually disappear in the long term as bullish steel demand overseas will drive met coal exports. However, stiff competition from prime coal exporters like Australia and Indonesia as well as failure to renew customer contracts could act as growth deterrents. “

WLT has been the subject of a number of other recent research reports. Analysts at Macquarie reiterated an “underperform” rating on shares of Walter Energy in a research note on Wednesday, June 4th. They now have a $4.00 price target on the stock, down previously from $5.00. Separately, analysts at Nomura reiterated a “neutral” rating on shares of Walter Energy in a research note on Friday, May 2nd. They now have a $8.00 price target on the stock. Finally, analysts at Clarkson Capital downgraded shares of Walter Energy from an “outperform” rating to a “market perform” rating in a research note on Monday, April 28th. They now have a $9.00 price target on the stock, down previously from $15.00. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has given a buy rating to the stock. Walter Energy presently has an average rating of “Hold” and an average price target of $10.07.

Shares of Walter Energy (NYSE:WLT) traded down 3.37% on Monday, hitting $5.305. 2,442,350 shares of the company’s stock traded hands. Walter Energy has a 52-week low of $4.25 and a 52-week high of $19.50. The stock has a 50-day moving average of $5.46 and a 200-day moving average of $9.39. The company’s market cap is $349.2 million. Walter Energy also saw a significant growth in short interest in the month of June. As of June 13th, there was short interest totalling 40,374,819 shares, a growth of 10.6% from the May 30th total of 36,497,253 shares. Based on an average trading volume of 5,568,171 shares, the short-interest ratio is currently 7.3 days. Currently, 62.1% of the shares of the stock are short sold.

Walter Energy (NYSE:WLT) last released its earnings data on Thursday, May 1st. The company reported ($1.50) earnings per share for the quarter, missing the analysts’ consensus estimate of ($1.22) by $0.28. The company had revenue of $413.90 million for the quarter, compared to the consensus estimate of $447.21 million. During the same quarter last year, the company posted ($0.64) earnings per share. Walter Energy’s revenue was down 15.8% compared to the same quarter last year. On average, analysts predict that Walter Energy will post $-5.54 earnings per share for the current fiscal year.

Walter Energy, Inc, is a producer and exporter of metallurgical coals for the global steel industry. The Company also produces thermal coal and industrial coal, anthracite, metallurgical coke, coal bed methane gas (NYSE:WLT) and other related products.

To view Zacks’ full report, visit Zacks’ official website.

Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.