Walter shares peak as analysts lift estimates on coal prices
NEW YORK—Shares of Walter Industries Inc. climbed to a fresh 52-week high Monday after several analysts raised their estimates on the diversified industrial company, citing higher coal prices.
The stock gained $8.63, or 11.8 percent, to $81.58. They reached a new 52-week high of $83.99 earlier in the session.
Davenport analyst Robert L. Chewning upgraded Walter to "Buy" from "Neutral." He said he expects the company -- which operates several segments including coal mining, home building and financing -- to benefit from higher coal prices over the next two years.
In a separate note, Brean Murray, Carret analyst Michael Gaugler boosted his price target to $150 from $107.
Gaugler was similarly upbeat that Walter would benefit from higher coal prices, adding that recent production results and its timeframe for mine expansions are meeting expectations.
Elsewhere, Avondale Partners Daniel Mannes maintained his "Outperform" rating and raised his price target to $82 from $73, also citing higher coal prices.
On Thursday, Walter said its first-quarter earnings were lower, but added that it settled pricing for 2 million metric tons of coal for the next two years at more than $315 per metric ton, calling the prices some of the highest in the industry.
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