Coal producer Peabody Energy Corporation ( BTU ) on Thursday caught a big upgrade from analysts at Deutsche Bank.
The firm said it boosted its rating on BTI to "Buy" with a $65 price target. That target suggests a 41% upside to the stock's Wednesday closing price of $46.09.
A Deutsche analyst commented "BTU, based in St. Louis, Missouri, is the world's largest private-sector coal company, with operations in the US and Australia. It is the leading producer in the Powder River Basin ( PRB ) and also one of the largest met coal producers contributing to the seaborne market. Growth depends on the successful execution of its roster of projects mainly in Australia. Given recent pull back in BTU's share price and the defensive nature of its thermal coal business, we are upgrading BTU to Buy."
Peabody Energy shares, which have plunged 28% year-to-date, rose 96 cents, or +2.1%, in premarket trading Thursday.
The Bottom Line
Shares of Peabody Energy ( BTU ) have a .74% dividend yield, based on last night's closing stock price of $46.09. The stock has technical support in the $41-$42 price area. If the shares can firm up, we see overhead resistance around the $50 price level.
Peabody Energy Corporation ( BTU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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