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UPDATE: Goldman Sachs Upgrades Peabody Energy Corporation To Buy on Growth From Rising Thermal Prices

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Goldman Sachs raises its rating on Peabody Energy Corporation (NYSE: BTU) from Neutral to Buy as it maintains a price target of $37 on shares.

Goldman Sachs notes, "We raise BTU to Buy for three reasons: (1) Improving China macro data and Newcastle thermal prices should drive greater Street credit for BTU's Australia business (better growth profile than covered US peers). (2) BTU is exposed to our view that PRB-levered stocks should see improved relative performance as PRB prices continue to rise from below cash costs today to mid-cycle by the end of 1H2013. (3) Its valuation given a 9% 3-year EBITDA CAGR screens favorably vs. the coverage group. Also, discussion of China thermal and Mongolia met coal JVs remain potential long-term catalysts.

BTU closed at $28.08 on Friday.

Latest Ratings for BTU

DateFirmActionFromTo
Mar 2018JP MorganMaintainsOverweightOverweight
Nov 2017JefferiesInitiates Coverage OnBuy
Sep 2017MacquarieInitiates Coverage OnNeutral

View More Analyst Ratings for BTU
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Posted-In: Goldman SachsAnalyst Color Upgrades Price Target Pre-Market Outlook Analyst Ratings

 

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