B. Riley has adjusted its outlook on Peabody Energy (BTU, Financial), revising the price target down from $27 to $19 while maintaining a Buy rating. This adjustment comes as the firm reassesses its estimates ahead of the first quarter results, reducing them by an average of 29% for metallurgical coal companies.
Investors will closely monitor Peabody's profit margins in this uncertain market environment, with potential production cuts looming if conditions do not improve. Moreover, while U.S. met coal exports to China have started to be redirected, the possibility of new tariffs poses additional risks to global economic growth and demand for metallurgical coal. The analyst highlights these factors as critical concerns for Peabody and the broader market in the coming months.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Peabody Energy Corp (BTU, Financial) is $20.75 with a high estimate of $26.00 and a low estimate of $18.00. The average target implies an upside of 84.77% from the current price of $11.23. More detailed estimate data can be found on the Peabody Energy Corp (BTU) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Peabody Energy Corp's (BTU, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Peabody Energy Corp (BTU, Financial) in one year is $22.65, suggesting a upside of 101.69% from the current price of $11.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Peabody Energy Corp (BTU) Summary page.
