UPDATE: Brean Murray Carret Cuts PT to $63 on Walter Energy on Poor Q2 Update

Brean Murray Carret reiterates its Buy rating on Walter Energy (NYSE: WLT) but reduces its price target from $81 to $63.

Brean Murray Carret says, "Net net, primarily due to the miss on the cost side, we now expected EBITDA of $110 million for Q2 2012, down from $165 million, and EPS of $0.32, down from $0.88, previously. Our Q2 2012 estimates were roughly in‐line with consensus estimates. However, despite the apparent size of the Q2 earnings revision, we would caution that the underperformance on the cost side was most likely driven by another disappointing performance of Walter's Willow Creek mine in Canada. With costs most likely flat at Walter's U.S. and mature Canadian operations, the impact of yesterday's Q2 2012 update on future earnings appears to be largely priced into the stock."

WLT closed at $45.06 on Thursday.