Nomura Downgardes Peabody Energy to “Reduce”; Lower Coal Prices, Higher Costs (BTU)

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Coal producer Peabody Energy Corporation ( BTU ) on Friday received some bearish commentary from analysts at Nomura Securities.

The firm slashed its rating on BTU to "Reduce" (also known as "Sell") with a $22 price target. That target suggests a 16% downside to the stock's Thursday closing price of $26.18.

A Nomura analyst noted the move was made because the company is facing the difficult combination of lower prices and higher costs.

Peabody Energy shares fell 26 cents, or -1%, in premarket trading Friday.

The Bottom Line
Shares of Peabody Energy ( BTU ) have a 1.30% dividend yield, based on last night's closing stock price of $26.18. The stock has technical support in the $21-$22 price area. If the shares can firm up, we see overhead resistance around the $27-$30 price levels.

Peabody Energy Corporation ( BTU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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