Deutsche Bank Downgrades Peabody Energy (BTU) and Coeur (CRE) to Hold

Deutsche Bank downgraded Peabody Energy (NYSE: BTU) from Buy to Hold with a price target of $19.00 (from $23.00). Coeur Mining, Inc. (NYSE: CDE) was downgraded to Hold with a price target of $11 (from $13).

Analyst Jorge Beristain said, "Upstream miners continue to be bogged down by China's muted performance. Weaker currencies have also robbed certain commodities of prior price-support arguments and it is a Mexican stand-off to see who shuts capacity first in met coal. Company headwinds continue to be balance sheets and resource nationalism trends. Still, we have seen a recent turn in past weeks on better-than-expected China IP data, so equities remain sensitive to this well trodden trend. We maintain our sub-sector preference for Industrial Metals equities over Precious Metals, aligned with underlying commodity views."

"We downgrade Coeur and Peabody to Hold (from Buy) after trimming PTs on reduced earnings (Coeur’s outlook tempered after excluding La Preciosa project and Peabody considering a more muted outlook for metallurgical coal prices). Among Industrial Metals, we maintain our Buys on Cliffs (NYSE: CLF), Freeport- McMoRan (NYSE: FCX), Grupo Mexico, Thompson Creek (NYSE: TC) and Vale (NYSE: VALE), which appear on track to improve/deliver free cash flow over the next few years (despite DB’s revised price metals deck) on ongoing company specific initiatives/developments and/or particular end market exposures. CONSOL (NYSE: CNX) remains our only Buy rated stock amongst our Energy sub-group given its fast-growing natural gas business and solid financial position, whereas Barrick remains the sole Buy amongst Precious Metals on attractive valuation," he added.

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 $16.61 yesterday.

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