UPDATE: Goldman Sachs Upgrades Peabody Energy on Australian Growth, Improving Cash Flow
In a report published Friday, Goldman Sachs analyst Neil Mehta upgraded the rating on Peabody Energy Corporation (NYSE: BTU) from Neutral to Buy, and raised the price target from $21.00 to $26.00.
In the report, Goldman Sachs noted, “We upgrade shares of Peabody Energy (BTU) to Buy from Neutral with 31% total return (including dividends) to our 6-month target price of $26. Four factors underpin our positive view of BTU: (1) the potential for continued cost cutting and volume growth in Australia, (2) the bottoming in met coal prices, (3) improving cash flow and (4) attractive relative and absolute valuation. Even after outperformance in the last three months, BTU has still lagged the S&P500 by over 50% in the last 12 months and 110% in the last 3 years. Our Buy rating comes in the context of a Neutral coverage view of the coal sector.”
Peabody Energy Corporation closed on Thursday at $20.06.
Latest Ratings for BTU
|Feb 2016||Sterne Agee CRT||Downgrades||Buy||Neutral|
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