- Peabody Energy is reconsidering its $3.775 billion purchase of coal assets due to complications from a mine fire.
- Analysts anticipate a significant upside, with an average target price suggesting a 90.65% increase.
- Peabody Energy holds an "Outperform" rating from analysts, hinting at strong growth potential.
Peabody Energy (NYSE: BTU) is in the spotlight as it reexamines its hefty $3.775 billion bid for coal assets from Anglo American. This reevaluation follows a recent fire at the Moranbah North Mine, raising questions about the asset's valuation and its production capacity. Consequently, the incident complicates the earnout-based portion of the deal, making investors wary.
Analyst Predictions for Peabody Energy
Wall Street analysts have set a bullish tone, providing one-year price targets for Peabody Energy Corp (BTU, Financial) that average $23.75. Estimates range from a high of $27.00 to a low of $18.00. This average target price forecasts a remarkable upside of 90.65% from the current stock price of $12.46. Investors can explore further detail on the Peabody Energy Corp (BTU) Forecast page.
Currently, 4 brokerage firms collectively rate Peabody Energy Corp (BTU, Financial) with an average recommendation of 1.8, indicating an "Outperform" status. The recommendation scale spans from 1 (Strong Buy) to 5 (Sell), suggesting a strong market position for BTU.
GuruFocus Valuation Insights
According to GuruFocus metrics, the estimated GF Value of Peabody Energy Corp (BTU, Financial) within the next year is projected at $22.65. This figure implies an upside of 81.82% from the present share price of $12.4572. The GF Value metric, representing the stock's fair market value, is derived from historical trading multiples and growth projections. For more insights, visit the Peabody Energy Corp (BTU) Summary page.
