NEW YORK (TheStreet) -- Shares of Arch Coal are up 1.82% to $1.12 in early morning trading despite a price target cut today to $1 from $2 at BMO Capital Markets, which maintained an 'underperform' rating on the stock. "Following 4Q results, we maintain our rating and lower our estimates for 2015 through 2017, primarily due to additional port-related throughput charges and lower realized price assumptions," analysts said. Arch Coal is targeting Appalachia costs of $58 to $62 per ton, versus 2014 actual cost of $64 per ton, analysts note, adding if Arch hits the midpoint of its 2015 target, it would represent a $27 million EBITDA benefit versus their previous estimate. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. On the other hand, tied to long-term throughput agreements with export terminals, liquidated damages are expected to total $50 to $60 million for 2015 which is not included in Arch Coal's unit cost or margin/ton targets and represents a "real/significant" cash outflow, analysts continued. Additionally, while not close to "chewing through all of the $1.2 billion of available liquidity anytime soon, Arch Coal is set to burn meaningful cash again in 2015," up to approximately $235 million, analysts added. On an adjusted basis, Arch Coal posted a fourth quarter loss yesterday of $1.09 per diluted share on revenue of $745.2 million. The earnings missed analysts' forecast for an adjusted loss of 38 cents per share while revenue came in above estimates of $729 million. ACI data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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