BofA/Merrill Lynch Downgrades Peabody Energy (BTU) to Underperform

BofA/Merrill Lynch downgraded Peabody Energy (NYSE: BTU) from Neutral to Underperform with a price target of $5.00 (from $7.00) on a weaker coal outlook.

The firm's commodiites team cut their thermal coal outlook 12% to $57/t in 2015E, with a 28% drop to $52/t in 2016E, and met coke falls 12% in 2015E to $110/t and 18% in 2016E to $115/t. They cite poor China fundamentals, reflected in high inventory levels at ports and lower recent thermal imports.

The firm cut FY 2015 EPS from ($0.90) to ($1.40), FY 2016 EPS from (0.05) to ($0.90) and FY 2017 EPS was set at ($0.10).

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 $6.12 yesterday.

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