UPDATE: Brean Murray Reiterates Buy Rating, Lowers PT on Peabody Energy

In a report published Wednesday, Brean Murray, Carret & Co. reiterated its Buy rating on Peabody Energy Corporation BTU, but lowered its price target from $28.00 to $25.00. Brean Murray noted, “Our $25 target is based on a detailed DCF model and an estimated 7.0x 2013 EV/EBITDA multiple. As the result of weaker Australia Q3 guidance versus our previous estimates, we are decreasing our 2012 EPS estimate to $1.89, from $2.31 previously. We are also decreasing our 2013 estimates to $1.84, from $2.11 previously, primarily on lower expectations of Australian realized prices on our updated sales mix. Overall, we believe that going forward Peabody's U.S. operations could experience a slight improvement while lower met and thermal coal prices mitigate volume gains in Australia.” Peabody Energy Corporation closed on Tuesday at $20.55.