UPDATE: Bank of America Merrill Lynch Reiterates Underperform Rating, Lowers PT on Peabody Energy Corporation
In a report published Friday, Bank of America Merrill Lynch reiterated its Underperform rating on Peabody Energy Corporation (NYSE: BTU), but lowered its price target from $22.00 to $20.00.
BofA Merrill Lynch noted, “Our 2013E EPS falls sharply to reflect guidance of higher-than-expected costs at its Australian coal ops and lower volumes overall. We now model 2013 EPS of $0.60 from $1.30 and 2014 at $1.75 from $2.50. BTU said in a release 2013 Australian costs would rise 5% y/y, with Q1 up 10% from ytd levels, U.S. thermal volumes were seen down 8-12M tons y/y to 180-190M tons, and Australian volumes were guided up 2-3M tons y/y to 33-36M tons. BTU expected Q1 would be trough earnings for 2013 on the view that met prices recover and costs ease.”
Peabody Energy Corporation closed on Thursday at $28.33.
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|May 2015||Credit Suisse||Initiates Coverage on||Neutral|
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