Peabody Energy’s Estimates Upped at FBR Capital (BTU)

Coal producer Peabody Energy Corporation ( BTU ) on Wednesday saw its earnings estimates boosted by analysts at FBR Capital Markets. The firm also maintained its “Outperform” rating and $77 price target on BTU, which implies a 27% upside to the stock’s Tuesday closing price of $60.50. An FBR analyst commented, “We are modestly tweaking our 2011 EPS/EBITDA estimates to $4.83/$2,466M from $4.79/$2,518M, reflecting higher than earlier estimated sales volume (approximately 6 MTs), lower western U.S. realizations (approximately $1.3/ton), and lower tax rate expectations (25% versus 27%). We are also introducing our quarterly earnings estimates for 2011, with a 1Q11 EPS/EBITDA forecast of $0.61/$394M, which is toward the higher end of company-provided guidance. Furthermore, we are raising our 2012 EPS/EBITDA estimates slightly to $5.26/$2,735M from $5.14/$2,723M.” Peabody Energy shares rose 50 cents, or +0.8%, in premarket trading Wednesday. The Bottom Line Shares of Peabody Energy ( BTU ) have a .56% dividend yield, based on last night’s closing stock price of $60.50. The stock has technical support in the $54-$56 price area. If the shares can firm up, we see overhead resistance around the $62-$65 price levels. Peabody Energy Corporation ( BTU ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed

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Peabody Energy’s Estimates Upped at FBR Capital (BTU)

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