UBS has adopted a slightly more favorable stance on Peabody Energy Corp. The Swiss bank updated its assessment yesterday, raising its price target for the coal producer’s stock from $27 to $29. The firm maintained its “Neutral” rating on the shares, indicating a cautious upgrade in valuation despite the company’s mixed recent operational performance.
Shifting Price Targets and Consensus View
This latest adjustment by UBS follows a more significant target increase by the same bank in October, when it moved its projection from $17 to $27. Other analysts have also been revising their outlooks. In October, Benchmark lifted its price target from $23 to $32, reiterating a “Buy” recommendation.
The broader analyst community continues to see potential upside. The consensus price target, based on a survey of seven analysts from three days ago, stands at an average of $34.97. The range of estimates is wide, spanning from $27 to $42 per share. With Peabody shares currently trading around $29.15, this average target implies a potential gain of approximately 20%. As of December 10th, six analysts were advising clients to buy the stock.
Operational Volatility and Key Metrics
Peabody’s financial results have demonstrated notable volatility. The company’s most recent quarterly report for Q3 2025 revealed challenges, with a reported loss per share of $0.58. This figure missed the consensus expectation for a loss of $0.19 by $0.39. Furthermore, quarterly revenue declined by roughly 7% compared to the same period the prior year.
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This performance contrasted with a stronger start to the fiscal year. In Q1 2025, Peabody delivered better-than-expected results, posting a net income of $34.4 million and an adjusted EBITDA of $144.0 million. This swing underscores the earnings instability facing the business.
Recent Financial Snapshot (Data from 3-10 days ago):
* Current Share Price: ~$29.15
* Market Capitalization: ~$3.37 billion
* 52-Week Trading Range: $9.61 – $35.99
* Dividend: A quarterly dividend of $0.075 was paid on December 3rd, representing an annualized yield of about 1.1%.
Conclusion: A Balanced Outlook
The recent upward revisions in price targets by analysts point to a measured improvement in sentiment regarding Peabody’s market position. However, this guarded optimism is tempered by the firm’s disappointing latest quarterly figures and declining sales. The overall picture remains nuanced: while the analyst consensus suggests room for share price appreciation, the company’s inconsistent operational performance continues to be a key risk factor for its future stock trajectory.
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