NEW YORK, February 15 (FinanceEnquiry.com) - Analyst Jim Corridore of S&P Capital IQ downgrades Arch Coal (NYSE: ACI) from BUY to HOLD, while reducing his estimates for the company. The target price has been reduced from $20 to $16.

In a research note published yesterday, the analyst mentions that the revision in the estimates are to reflect the likelihood of a continued weakness in the demand for thermal coal and pricing, as building coal stockpiles at power producers and low natural gas prices led to utilities switch away from coal. Although the outlook for metallurgical coal and export coal remains robust relatively, Arch Coal’s shares are likely to move based largely on thermal coal demand until the demand stabilizes, the analyst says. The EPS estimate for 2012 has been reduced from $2.40 to $1.46.