Arch Resources, Peabody surge as Jefferies hikes coal price forecast

Warrior Met Coal

07/06/2022 17:14

** Coal stocks surge on Tues as Jefferies says demand
inflection in China to offset weakness elsewhere
    ** China's policy shift to various stimulus measures and
relaxation of some COVID restrictions expected to drive demand
growth for commodities, Jefferies says
    ** Brokerage hikes 2022 Australia thermal coal forecast (6k
cal/kg) to $320/ton, up 36% from prior estimate
    ** In turn, Jefferies upgrades Arch Resources Inc  ARCH.N , 
   Peabody Energy  BTU.N , Warrior Met Coal  HCC.N  and Ramaco
Resources Inc  METC.O  to "buy" from "hold"
    ** ARCH hits record high and last up 8.7%
    ** BTU up 8.1%, HCC gains 10.3%, while METC jumps 17.6%
    ** Hallador Energy  HNRG.O  and CONSOL Energy Inc  CEIX.N 
up 5.5% and 6.2%, respectively, on the session

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))