UPDATE: BMO Capital Markets Lowers Target to $45 on Peabody Energy

BMO Capital Markets reiterates its Outperform rating on Peabody Energy (NYSE: BTU) and lowers its price target by $5 to $45 on quarterly results that missed expectations.

BMO Capital Markets comments, "Peabody's Q1/12 EPS guidance of US$0.50–0.75 was significantly lower than BMO Research's previous estimate of US$1.63 and the Street's US$1.10. Australian FY2012 met coal sales guidance of 14–15Mt was also below BMO Research's previous estimate of 18.2Mt primarily due to Macarthur (equity treatment for Middlemount, later ramp at Codrilla and lower production at Moorvale/Coppabella)."

BTU closed at $35.45 a share on Monday.