BMO Capital analyst Katja Jancic maintained a Buy rating on Peabody Energy Comm yesterday and set a price target of $34.00.
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Katja Jancic’s rating is based on several key factors that highlight Peabody Energy’s potential for growth and profitability. The company’s third-quarter EBITDA was largely in line with expectations, with the met coal segment performing better than anticipated. Although some areas fell short, the outlook for the fourth quarter suggests improved volumes and reduced costs in the met coal segment, indicating a positive trend.
Additionally, the development of the Centurion mine is progressing well and is expected to enhance Peabody’s portfolio by early 2026. This development is likely to lead to increased profitability and free cash flow generation, offering potential for further valuation re-rating. Furthermore, Peabody’s ongoing efforts in exploring rare earth elements could provide additional opportunities for growth, despite limited details at this stage.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $32.00 price target.