Arch Coal focuses on met coke

Arch Coal focuses on met coke

Major US stock market analyst Morgan Stanley increased its rating for Arch Coal, the second largest coal producer in the US, from “underweight” to “overweight”. Morgan Stanley set a price target of $52 for company stocks, which currently trade at $40.70. Arch Coal is reportedly looking to focus extensively on the metallurgical coke market. The company projects sales of nearly 8 million tons p.a. of met coal by 2007, a sharp rise from the 2.8 million tons it sold in 2004. The company will likely earn a $40-per-ton margin on met coke. The company underwent an expansion last year in Wyoming, and it is also planning to develop a new longwall mine in Utah this year.