Shares of Massey Energy
In early trading on the New York Stock Exchange on Tuesday, the company's shares were down $5.33, or 9.8 percent, at $49.36.
The cost of protecting Massey's debt against default also rose after the blast at the Upper Big Branch mine. Massey's five-year credit default swaps rose to 385 basis points from 365 basis points on Monday, according to data from Phoenix Partners Group.
However, analysts at Jefferies & Co maintained their buy rating on Massey shares.
We believe Massey Energy is a well-capitalized Eastern coal producer and ranks as the largest, most diversified, and lowest-cost coal producer in Central Appalachia, they wrote in a research note.
With a favorable product mix, well-capitalized infrastructure, and solid margin generation in a very difficult market, they wrote, we believe the shares appear under-priced.
(Reporting by Steve James; Editing by Lisa Von Ahn)