Goldman Sachs has downgraded coal company, Peabody Energy
) to "Neutral" on Tuesday.
The firm downgraded BTU from a "Buy" to "Neutral," and have
raised their price target from $26 to $28. This price suggests a
0.6% increase over the stock's current price of $27.82, and a -18%
decrease from the stock's YTD price of $33.11.
An analyst from the firm commented, "we continue to view BTU
favorably given its leverage to our view thermal coal prices/demand
will improve in 2013 via low cost positions in the PRB and Illinois
Basins, leading exposure to Asia demand growth via its Australia
business and strong balance sheet," the analyst notes. "However,
risk/reward for shares appears more balanced after BTU has rallied
with other US coal stocks as signs China steel production is
picking up and domestic thermal coal inventories are slowly falling
have driven investors that have been on the sidelines to increase
exposure to US coal stock."
Peabody Energy shares were down $1.09, or -3.77% during
premarket trading Tuesday.
The Bottom Line
Shares of Peabody Energy (
) have a 1.17% dividend yield, based on last night's closing stock
price of $28.95. The stock has technical support in the $22-$25
price area. If the shares can firm up, we see overhead resistance
around the $31-$32 price levels.
Peabody Energy Corporation(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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, as well as a detailed explanation of
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