Grande Cache Coal downgraded to "hold"

05/28/08 - GMP Securities

NEW YORK, May 28 (newratings.com) - Analysts at GMP Securities downgrade Grande Cache Coal Corporation (3GC) from "buy" to "hold," while reducing their estimates for the company. The 12-month target price has been reduced from $9.25 to $9.00.

In a research note published yesterday, the analysts mention that the company has reported its 4Q headline net losses in-line with expectations. Grande Cache Coal has issued its coal pricing guidance for FY09 at $245-$255 per tonne, short of the estimates, mainly due to higher-than-expected carryover tonnage from FY08. The EPS estimates for FY09 and FY10 have been reduced from $2.79 to $2.20 and from $2.12 to $2.08, respectively.