Peabody Energy downgrade at Deutsche Bank sinks coal stocks

Coal stocks suffer a beating after Deutsche Bank downgrades Peabody Energy (BTU -3.3%) to Hold from Buy with a $19 price target, down from $23, to reflect lower realized coal prices (particularly metallurgical coal) and anticipated ongoing cost pressures in foreseeable future.

Consol Energy (CNX -1.7%) is the firm’s only Buy-rated coal stock because of the company’s “fast-growing natural gas business and solid financial position.”

Although the Deutsche team says its focus is shifting to more company specific stories from an emphasis on sector performance, other coal companies are sharply lower: ACI -4.3%, ANR -4.8%, YZC -1.3%, CLD -2.4%, WLT -3.6%, RNO -1.5%, WLB -2%.

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Comments (7)
  • 6151621
    , contributor
    Comments (1172) | Send Message
    Did the analyst see that the price is in mid 16's when he made this report because ~20% upside still seems good. I guess we should all realize sell side analysts are not to be believed but sheeple will always follow one because a sheeple can't think for themselves. BTU is at $16 support! If this falls we will likely go lower so then shouldn't it be a sell?
    7 Jul 2014, 01:11 PM Reply Like
  • dickalou
    , contributor
    Comments (2) | Send Message
    As with every sector in the markets, I think a lot of them try to make it better for their firm or whatever to steal stock so when they do upgrade the are the ones with the wind fall.
    7 Jul 2014, 05:46 PM Reply Like
  • dickalou
    , contributor
    Comments (2) | Send Message
    I am an individual investor who started with little or nothing in the markets a few years ago and now I own several thousand shares of different companies. Mostly the energy sector.
    7 Jul 2014, 05:46 PM Reply Like
  • 11146471
    , contributor
    Comments (1397) | Send Message
    Coal is mostly hated right now. It reminds me gold last year. Not even one says anything positive about it nowadays.
    7 Jul 2014, 02:32 PM Reply Like
  • sgthoov
    , contributor
    Comments (6) | Send Message
    Drive the price down a little more then load up on the best of the group, right Deutsche Bank?
    7 Jul 2014, 02:56 PM Reply Like
    , contributor
    Comments (3) | Send Message
    Coal sector will go up in the next years for electrical use namely in germany where the nuclear energy seems to be pushed away
    7 Jul 2014, 03:29 PM Reply Like
  • rocknrollstew
    , contributor
    Comments (118) | Send Message
    value engine has a sell rating for ANR and WLT..BTU and ACI are the only holds..consol is a buy.... in general obama is getting his f*&^ckin way on destroying this industry..midterms only hope for survival..
    7 Jul 2014, 04:45 PM Reply Like
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