BMO Capital upgraded Peabody Energy (BTU) to Outperform from Market Perform with an unchanged price target of $26. Peabody’s product portfolio/mix is set to improve following the acquisition of Anglo’s metallurgical coal assets and ramp-up of the Centurion mine, which should translate to better profitability over time and offer a further re-rate potential for the shares, the analyst tells investors in a research note. BMO recognizes there is execution risk but with the stock down over 20% since the acquisition announcement, it views the risk/reward as positive.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on BTU:
- Peabody goes big on met with Anglo coal assets acquisition, says B. Riley
- Anglo American Sheds Australian Coal Assets to Peabody
- Peabody Energy’s Strategic Acquisition of Coal Assets
- Peabody Energy to acquire Anglo American steelmaking coal assets for $2.32B
- Peabody Energy, RWE partner to develop energy storage pipeline on mine lands