Deutsche Bank Maintains a 'Buy' on Peabody Energy (BTU); Defensive Natural of its Coal Business + Favorable Valuation
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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: 6 | Down: 4 | New: 8
Rating Summary:
7 Buy, 12 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 8
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Deutsche Bank maintains a 'Buy' on Peabody Energy (NYSE: BTU) price target of $50.00.
Deutsche analyst says, "Peabody Energy, based in St. Louis, Missouri, is the world's largest private-sector coal company, with operations in the US and Australia. It is the leading producer in the Powder River Basin (PRB) and also one of the largest met coal producers contributing to the seaborne market. Growth depends on the successful execution of its roster of projects mainly in Australia. Given current valuation of BTU's share price and the defensive nature of its coal business, we rate the shares Buy."
"We believe that Peabody should trade at the high end of the peer group's trading range given its size, diversified assets, and scale. As a valuation crosscheck, we note that our PT equates with ~1.0x our NAV calculated under a DCF methodology (9.2% WACC with 10.7% Ke and 5.6% post-tax Kd, and a 2.0% terminal growth rate [based on our knowledge of the asset base and expectations of long-term growth].)"
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 $35.68 yesterday.
Deutsche analyst says, "Peabody Energy, based in St. Louis, Missouri, is the world's largest private-sector coal company, with operations in the US and Australia. It is the leading producer in the Powder River Basin (PRB) and also one of the largest met coal producers contributing to the seaborne market. Growth depends on the successful execution of its roster of projects mainly in Australia. Given current valuation of BTU's share price and the defensive nature of its coal business, we rate the shares Buy."
"We believe that Peabody should trade at the high end of the peer group's trading range given its size, diversified assets, and scale. As a valuation crosscheck, we note that our PT equates with ~1.0x our NAV calculated under a DCF methodology (9.2% WACC with 10.7% Ke and 5.6% post-tax Kd, and a 2.0% terminal growth rate [based on our knowledge of the asset base and expectations of long-term growth].)"
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 $35.68 yesterday.
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