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Alliance Resource Partners rated cautious buy with 9%+ yield and improving financials amid stable coal demand.

Analyst Insights
06 Jun 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Alliance Resource Partners (ARLP) is considered a cautious buy due to its attractive 9%+ yield, reasonable valuation, and improving balance sheet metrics. The stock trades at a forward P/E of 11.87x, expected to drop to 8.5x by 2028, indicating potential upside. Its distribution coverage is stable at 1.0x with room to grow, and the payout is expected to remain at $0.60 per unit. While coal still accounts for 80% of EBITDA, growing royalty segments and supportive policies alongside global demand provide near-term stability despite ongoing commodity and policy risks.

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