Peabody Energy Co. (NASDAQ:BTUUQ)‘s stock had its “buy” rating reaffirmed by equities researchers at FBR & Co in a research note issued to investors on Wednesday. They currently have a $34.00 price objective on the coal producer’s stock.
The analysts wrote, “On April 17, Peabody Energy announced that it would retain the Metropolitan met coal mine in New South Wales and its associated interest in the Port Kembla Coal Terminal. South 32, the buyer of the asset, was unable to obtain regulatory clearance from the Australian Competition and Consumer Commission (ACCC) for the contemplated $200M deal. In our opinion, the failure of the deal closing is slightly positive for Peabody’s valuation, given the extremely strong met coal prices at this time. Assuming a 2Q benchmark of $300/Mt, the mine could generate around $130M in EBITDA in 2017. We estimate that on our price deck of $140/Mt in 2018, the mine would generate $42M in EBITDA. We see EBITDA at $29M on our long- term price of $130/Mt. We have tweaked our estimates to reflect the contributions from Metropolitan to Peabody going forward. We see the transaction adding about $1 to our price target, which is now $34 per share. We maintain our Outperform rating.””
BTUUQ has been the subject of several other research reports. Zacks Investment Research upgraded shares of Peabody Energy from a “hold” rating to a “buy” rating and set a $2.00 target price for the company in a research note on Monday, March 27th. Seaport Global Securities assumed coverage on shares of Peabody Energy in a research note on Saturday, April 8th. They issued a “hold” rating for the company. Finally, Stifel Nicolaus assumed coverage on shares of Peabody Energy in a research note on Wednesday, April 5th. They issued a “hold” rating and a $29.00 target price for the company.
Peabody Energy (NASDAQ:BTUUQ) opened at 0.383 on Wednesday. Peabody Energy has a 1-year low of $0.55 and a 1-year high of $18.75.
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Peabody Energy Company Profile
Peabody Energy Corporation is a coal company, which is engaged in the mining of thermal coal for sale primarily to electric utilities and metallurgical coal for sale to industrial customers. Its mining operations are located in the United States and Australia. Its segments are Powder River Basin Mining, Midwestern U.S.
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