BTU - As Europe Begs For Coal Peabody Energy Can Deliver
- Coal prices have risen by over 100% this year as Russian and Indonesian exports decline.
- Europe's effort to reduce its dependence on Russian natural gas necessitates a significant increase in coal consumption.
- U.S coal mining companies with export capacity such as Peabody Energy are set to make immense profits in the current environment.
- I estimate Peabody may see an EPS of $10 up to potentially $35 this year, depending on how the highly volatile situation unfolds.
- Given shifting market dynamics against natural gas, investors should not discount the long-run potential of U.S coal miners like Peabody.
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As Europe Begs For Coal, Peabody Energy Can Deliver