Peabody Energy initiated with a Buy at Texas Capital

Texas Capital initiated coverage of Peabody Energy (BTU) with a Buy rating and $27 price target Thermal coal has long served as the foundation of the company, but Peabody’s growth strategy more recently has been focused on expanding its metallurgical coal business, the analyst tells investors in a research note. The firm believes that the company’s scale and global footprint is a major differentiator relative to its U.S. peers, putting Peabody in a strong position to target growing end-markets in Asia and other emerging economies, Texas Capital added.