ACI the world’s 2nd largest coal company, hit an all time low today. That’s not unusual, but the thing is, 3 analysts upgraded or maintained buy on the stock this morning, and the stock still fell 8%.
Arch Coal Raised To Buy From Fair Value By CRT Capital >ACI (Dow Jones)
Jefferies & Company Maintains Archal at Buy, Lowers PT from $24 to $18 (Benzinga)
Deutsche Bank Maintains Archal at Buy, Raises PT from $19 to $15 (Benzinga)
The stock has an unbelievable 5% dividend per year, and coal is bound to come back at some point. Is this the perfect stock to hold long term? I mean if these analysts are predicting 15-19 per share for price target, and the dividend is 5% alone, isn’t this stock going to make money from a 8.50 entry? BFN always does its own due diligence, and you should do the same.
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