NGLOY - Peabody Energy: Some Positive Developments But Not Too Compelled To Shift Our Stance
2024-07-03 11:19:20 ET
Summary
- BTU's met coal division fared poorly in Q1, due to operational issues in a few of their mines, but Q2 is expected to see better volumes.
- Adverse developments at Anglo-American's Grosvenor mine could impact the supply demand balance in the seaborne met coal market for the rest of this year.
- Valuations for BTU have shifted, with now a premium forward EV/EBITDA multiple and shareholder yield progress potentially capped due to higher CAPEX commitments.
- Peabody's Centurion Mine developments are progressing well, and it is expected to play a key role going forward.
- The charts look neutral with a slightly bullish tilt.
Introduction
The stock of Peabody Energy Corp ( BTU ), a global producer of coal for the energy and steel industries, has experienced a volatile 2024 and hasn’t ended up making a great of progress through the year. Whilst the prime benchmark for US equities has notched up steady gains of 16%, our stock in focus, has lost ground by nearly 3%....
Peabody Energy: Some Positive Developments, But Not Too Compelled To Shift Our Stance