Brean Murray Carret & Co. Downgrades Peabody Energy (BTU) to Hold, Cites Lack of Catalysts

September 21, 2012 7:48 AM EDT
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Brean Murray Carret & Co. downgraded Peabody Energy (NYSE: BTU) from Buy to Hold, citing lack of clear catalysts moving forward through the current market softness.

"While increasing efficiency and lowering costs in Australia have the greatest potential to enlarge returns for the company, unfortunately, we believe these potential advancements will likely be offset by the seaborne met coal price weakness, as described above. Thus, we believe Peabody’s efforts to increase margins in Australia may be stymied in the near future," the analyst said. "In addition, Peabody’s most recent investor update earlier this month saw the company
reduce their long term production targets, dropping the previous Australian guidance for 2015‐2017 met and seaborne thermal production from 22‐25 million tons and 15‐17 million tons, respectively, to their new guidance of 20 million tons of met coal and 12 million tons of seaborne thermal coal in 2015."

For an analyst ratings summary and ratings history on Peabody Energy click here. For more ratings news on Peabody Energy click here.

Shares of Peabody Energy closed at $24.42 yesterday.

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