Peabody Energy is a new Buy at MKM Partners

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

Peabody Energy (NYSE:BTU) is initiated with a Buy rating and $33 price target at MKM Partners, as the company emerges from bankruptcy with the largest operations in the two lowest-cost domestic thermal coal basins and coking and thermal coal export operations in Australia, all while coal commodity prices have strengthened.

MKM expects thermal markets to improve once inventories drop to a new normal level of ~110M tons and for BTU to have among the highest margins in the space.