U.S. coal mining stocks rise on Credit Suisse boost

NEW YORK (Reuters) - Shares in U.S. coal mining companies rose on Wednesday after Credit Suisse upped its stock price targets for the sector on a bullish forecast for steel-making metallurgical coal prices.

"We believe the primary driver of higher met coal prices will be continued strength in demand from growing global steel production," analyst David Gagliano said in a research note.

He cited the global economic recovery, along with supply constraints, particularly in Australia.

"The net impact is that coking (metallurgical) coal markets look likely to remain reasonably tight over the forecast period to 2012."

Gagliano raised the stock price target for Alpha Natural Resources Inc (ANR.N) to $45 from $42, Arch Coal Inc (ACI.N) to $26 from $25, Consol Energy Inc (CNX.N) to $57 from $55, Massey Energy Co (MEE.N) to $38 from $31 and Peabody Energy Corp (BTU.N) to $52 from $48.

In morning trading on the New York Stock Exchange, Alpha was up 2.9 percent at $40.33, Arch was 1.8 percent higher at $23.59, Consol rose 2.7 percent to $49.82, Massey was up 3.9 percent at $36.52 and Peabody was 3.9 percent higher at $45.60.

(Reporting by Steve James, editing by Gerald E. McCormick)