UPDATE: Goldman Sachs Lowers Target to $41 on Peabody

Goldman Sachs reiterates its Neutral rating on Peabody (NYSE: BTU) and lowers its price target to $41 from $43 on weaker earnings power.

Goldman Sachs notes, "We remain Neutral-rated on BTU as we see better upside for other coal stocks. While BTU's leading organic growth profile and Asia exposure remain positive, we believe greater clarity on the long-term cost structure and growth potential of the Macarthur assets is needed for shares to outperform. In the near term BTU may lose some of its valuation premium vs. peers as, like ANR, WLT and ACI, it acquired properties that initially disappointed."

BTU closed at $36.86 a share on Wednesday.