Nathan Martin, an analyst from Benchmark Co., maintained the Buy rating on Peabody Energy Comm (BTU – Research Report). The associated price target is $23.00.
Nathan Martin has given his Buy rating due to a combination of factors that indicate strong operational performance for Peabody Energy. The company reported first-quarter adjusted EBITDA of $144 million, surpassing both consensus estimates and internal projections, primarily due to lower operating costs across its segments. This strong performance was evident in the cost per ton, which was at or below the low end of guidance, contributing to the overall positive outlook.
Despite uncertainties surrounding the acquisition of Anglo American’s met coal assets, Peabody’s operations remain robust, with segments like Seaborne met and thermal expected to perform well in the upcoming quarters. The company is also essentially sold out of its PRB coal, indicating strong demand. These factors, coupled with management’s confidence in handling potential acquisition challenges, support the Buy rating, even as the price target has been adjusted to reflect current market conditions.
In another report released on May 5, BMO Capital also maintained a Buy rating on the stock with a $20.00 price target.