Coal stocks soar

COAL stocks, including Felix Resources and Macarthur Coal, have seen dramatic share price gains on the back of a positive Credit Suisse report on the sector.

Blair Price

According to Dow Jones Newswires, the stockbroker and investment bank upgraded Centennial Coal and Macarthur to an “outperform” rating, up from “neutral”

Credit Suisse also reportedly kept its “outperform” view of Felix and lifted the target price of the company from $A12 to $15 a share, while raising Macarthur to $6.75 from $4.50 and Centennial to $2.75 from $2.

Coal was seen by Credit Suisse as the only sector in its “coverage universe” that was continuing to trade at a steep discount to underlying valuation.

Macarthur shares closed at $6.67 yesterday, 22% higher than Friday’s close of $5.44.

Felix shares closed yesterday down 33c, but at $13.44 they were still 13.5% higher than Friday’s close of $11.84.

Centennial shares have gained 14% since Friday, closing at $2.54 yesterday.