UPDATE: Bank of America Downgrades Peabody Energy to Underperform on Cost, Price Pressures

Bank of America lowered its rating on Peabody Energy

from Buy to Underperform and reduced its price objective from $32 to $22. Bank of America noted, "We downgrade coal miner Peabody Energy (BTU) to Underperform from Buy to reflect greater concern over cost pressures at its Australian operations and after the BofAML Global Commodities Team lowered its benchmark hard coking coal (HCC) price assumptions to $185/mt from $220/mt for 2013E and $190/mt from $200/mt for 2014E. The double downgrade factors in greater expected earnings disappointment relative to peers given Australian cost pressures from new taxes and FX." Peabody Energy closed at $24.03 on Friday.