Peabody Energy may be on its way back: Barron's

|About: Peabody Energy Corp. (BTUUQ)|By:, SA News Editor

Peabody Energy (BTU) CEO Gregory Boyce believes coal prices are set to rise over the next year and Barron's thinks "even a modest upturn would light a fire under [the company's] shares."

Jacqueline Doherty says "there are multiple signs of equilibrium returning to the industry," including pressure on supply thanks to the closure of high-cost mines and increasing demand as some electric utilities switch back to coal from natural gas.

If "the ideal time to buy cyclicals is when earnings are depressed and price/earnings multiples are lofty," then BTU shares may be a bargain.

Watch for a potential Barron's bounce on Monday.