
Why Most Analysts Recommend a ‘Hold’ for Cloud Peak Energy
By Alexis TateUpdated
Analysts’ ratings
According to data compiled by Thomson Reuters, nine analysts are covering Cloud Peak Energy (CLD) stock. Of these analysts, seven (or 78.0%) analysts rated CLD stock as a “hold,” and two (or 22.0%) gave it a “buy” or “strong buy” rating. The company did not receive any “sell” or “strong sell” recommendations.
On October 24, 2017, Cloud Peak Energy’s consensus 12-month target price was $4.20, which reflects a downside potential of ~6.5% from its market price of $4.49.
The target price and return potential of CLD’s peers in the coal (KOL) industry follow:
Consensus estimates
Analysts expect Cloud Peak Energy to post muted 3Q17 earnings compared to 3Q16. These analysts expect the company to report an adjusted loss of $0.04 per share in 3Q17 compared to earnings per share of $0.04 in 3Q16. CLD reported an adjusted loss of $0.09 per share in 2Q17.
Notable ratings
On January 30, 2017, J.P. Morgan (JPM) upgraded Cloud Peak Energy (CLD) stock from “neutral” to “overweight.” JPM assigned a target price of $7.00 for the stock.
Brokerage firm Jefferies initiated coverage of Cloud Peak Energy stock on March 7, 2017, giving the stock a “hold” rating and a target price of $5.00.
In the next part of this series, we’ll examine analysts’ estimates and see whether these ratings are optimistic.