UPDATE: Citigroup Reiterates Buy Rating, Lowers PT on Peabody Energy Corporation

In a report published Monday, Citigroup reiterated its Buy rating on Peabody Energy Corporation

, but slightly lowered its price target from $33.00 to $32.00. Citigroup noted, “BTU released their initial guidance for 2013, which sits well below our prior estimates because of greater cash cost escalation and a significant DD&A step-up, both in Australia. After incorporating guidance and recent 1Q13 metallurgical coal settlements, we are lowering our EPS estimate for 2013 to $0.75 from $1.90 and our 2014 estimate to $1.86 from $2.50. We are revising our target price to $32 and our 2013 EBITDA estimate declines to $1.4 bln from $1.7 bln.” Peabody Energy Corporation closed on Friday at $27.68.