Arch Coal Downgraded to “Sell” at Goldman Sachs (ACI)

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Coal producer Arch Coal, Inc. ( ACI ) on Tuesday got slapped with a rare "Sell" call by analysts at Goldman Sachs, sending its shares lower in premarket trading.

The firm cut its rating on ACI "Neutral" to "Sell," but still boosted its price target slightly, from $35 to $36. That target implies a small upside to the stock's Friday closing price of $34.04.

Goldman noted that ACI's potential upside is less attractive compared to its peers. The analyst also doesn't see much upside when it comes to U.S. thermal coal prices, while investors usually turn to ACI for exposure to thermal coal.

Arch Coal shares fell 94 cents, or -2.8%, in premarket trading Tuesday.

The Bottom Line
Shares of Arch Coal ( ACI ) have a 1.18% dividend yield, based on last night's closing stock price of $34.04. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $40 price level.

Arch Coal, Inc. ( ACI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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