The bearish calls for coal-related names keep coming, as this morning we have Brean Murray Carret & Co. downgrading Peabody Energy (BTU) from a buy to a hold.
The analyst cites: “Peabody’s most recent investor update earlier this month saw the company reduce their long term production targets, dropping the previous Australian guidance for 2015‐2017 met and seaborne thermal production from 22‐25 million tons and 15‐17 million tons, respectively, to their new guidance of 20 million tons of met coal and 12 million tons of seaborne thermal coal in 2015.”
Shares of Peabody Energy are down 26% YTD.
The Bottom Line
Shares of Peabody Energy (BTU) have a 1.39% dividend yield, based on last night’s closing stock price of $24.42. The stock has technical support in the $20 price area. If the shares can firm up, we see overhead resistance around the $26-$27 price levels.
Peabody Energy (BTU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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