Peabody downgraded to Neutral from Buy at B. Riley

B. Riley analyst Nick Giles downgraded Peabody (BTU) to Neutral from Buy with a price target of $30, down from $42. Peabody faces increasing cost uncertainty as diesel price inflation pressures surface mining operations, particularly in the Powder River Basin, while ongoing commissioning challenges at its Centurion mine and limited near-term visibility on cost relief have contributed to a sharp share decline and a more cautious investor stance despite still-healthy free cash flow yield expectations in 2026-2027, the analyst tells investors in a research note.