- Teck Resources (TCK +5.6%) is upgraded to Equal Weight from Underweight with an $18 price target, hiked from $7, at Morgan Stanley, which notes that met coal prices have jumped ~80% over the past month.
- Stanley analyst Evan Kurtz calculates that every $1/ton change in met coal prices adds C$35M to TCK's annualized EBITDA, meaning that the $57/ton increase during the last two weeks alone has added C$2B and contributed $8/share to the company's value.
- “The historical pattern suggests that TCK could generate significant cash flow in the coming quarters, which could help to alleviate many of the balance sheet concerns prevalent earlier in the year,” Kurtz comments.