TSX:TECK.A - Post by User
Post by
Oldnicknoron May 26, 2015 10:49am
288 Views
Post# 23764687
TD downgrade TCK
TD downgrade TCK DJ Coal-Price Outlook Seen Weighing on Teck -- Market Talk
9:15 EDT - TD Securities says while the price of premium coking coal seems to be finding a floor in the low-$80/ton range, "we are not optimistic that a rapid price recovery is in the offing." That's not great news for Teck (TCK, TCK.B.T), which generated nearly 1/3 of its 2014 gross profit from steelmaking coal. TD cuts its coal-price deck by about 14% for each of the next 5 years, and consequently trims its target price on TCK.B.T by C$2 to C$16. That as the bank notes the company is up against a soft global macro-economic backdrop and will see little or no organic growth the next several years. TD adds that amid pressures on coal and other commodity prices, investors will keep a sharp eye on TCK.B.T's liquidity levels. Shares closed yesterday at C$15.43 and have slumped 16% this month to erase the year's gain. (carolyn.m.king@wsj.com; @CarolynKing1)
TSX:TCK.B down 3.7% in Toronto, N:TCK down 5.5% in NY.