FBR Capital Maintains an 'Outperform' on Peabody Energy (BTU); Finally Catches Tavan Tolgoi by the Tail
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Price: $25.48 +5.77%
Rating Summary:
7 Buy, 12 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 12 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Peabody Energy (NYSE: BTU).
FBR analyst says, "According to the Mongolian government website, Peabody Energy has been awarded a partial mining interest in the western Tsankhi block of Tavan Tolgoi along with Shenhua and a Russian consortium this past weekend. While all the details are not disclosed and the Mongolian parliament needs to approve the deal, we updated our sensitivity analysis and determined that the value to Peabody Energy is about $2/share and ranges from $1 to $5/share. With many of the macro wall of worry subsiding (not over though), investor interest in coal stocks have picked up with steam coal prices have rallied across the globe."
"Preliminary details. The Mongolian government company, Erdenes Tavan Tolgoi (ETT) will own the operation and the foreign entities will develop and own a servicing interest Shenua (40%), BTU (24%), and the Russian consortium (36% shared evenly between the Russians and Mongolians). The group will pay $1 billion in two upfront installments and a 5% royalty to the Mongolian government."
For more ratings news on Peabody Energy click here and for the rating history of Peabody Energy click here.
Shares of Peabody Energy closed at $59.39 yesterday.
FBR analyst says, "According to the Mongolian government website, Peabody Energy has been awarded a partial mining interest in the western Tsankhi block of Tavan Tolgoi along with Shenhua and a Russian consortium this past weekend. While all the details are not disclosed and the Mongolian parliament needs to approve the deal, we updated our sensitivity analysis and determined that the value to Peabody Energy is about $2/share and ranges from $1 to $5/share. With many of the macro wall of worry subsiding (not over though), investor interest in coal stocks have picked up with steam coal prices have rallied across the globe."
"Preliminary details. The Mongolian government company, Erdenes Tavan Tolgoi (ETT) will own the operation and the foreign entities will develop and own a servicing interest Shenua (40%), BTU (24%), and the Russian consortium (36% shared evenly between the Russians and Mongolians). The group will pay $1 billion in two upfront installments and a 5% royalty to the Mongolian government."
For more ratings news on Peabody Energy click here and for the rating history of Peabody Energy click here.
Shares of Peabody Energy closed at $59.39 yesterday.
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