UPDATE: Brean Murray Carret & Co. Upgrades Walter Energy

According to a research report published this morning, Brean Murray Carret & Co. has upgraded Walter Energy (NYSE: WLT) from Hold to Buy.

In the report, Brean Murray Carret & Co. said, "Concurrent with increased production, Walter has already shown progress on the cost side during 1Q12, decreasing costs in the U.S. to $110/MT from $119/MT in 4Q11. As the year progresses, we believe that Walter has yet more leeway to take down costs into the $100/MT level by 4Q12 end. While we expect that cost reductions in Canada will materialize at a slower pace (we are projecting costs of $137/MT at mature operations, versus company guidance of $130/MT later this year), we do affirm that costs should improve there."

Brean Murray Carret & Co. maintains its $81 PT on Walter Energy, which closed yesterday at $65.98.