Cloud Peak Energy reiterated a Buy at Stifel following earnings miss
Cloud Peak Energy (CLD +5.2%) rebounds from its post-earnings slide, as Stifel reiterates a Buy rating on the stock, although it lowers its price target to $7 from $7.25.
Stifel says the Q1 EBITDA miss was driven by lower than expected export volumes, which the company blamed on severe weather in the Pacific Northwest, which impacted rail performance; the reduced export shipment rate also caused lost shipments of potentially high margin export sales during a period of generally strong export market conditions for thermal coal, as well as triggering minimum payment obligations and demurrage charges.
Due to the reduced export deliveries in Q1, CLD lowered the high end of its 2017 EBITDA forecast to $80M-$110M vs. its prior range of $80M-$120M.
