The analyst price target for Peabody Energy increased by $1.50 to $33.95. Analysts cited improved profit margins, higher revenue growth expectations, and confidence in the company's strategic focus on expanding its metallurgical coal business.

Analyst Commentary

Recent analyst research on Peabody Energy reflects a range of perspectives regarding the company's growth prospects, execution, and overall valuation. While some analysts highlight the company's strategic initiatives and positioning within the coal market as key strengths, others note headwinds that could temper future performance.

• Bullish analysts cite Peabody's expansion in metallurgical coal as a key driver of future growth. They emphasize the strategic shift from thermal coal toward higher-value markets.
• The company's scale and global reach are considered significant differentiators. This enables Peabody to target expanding end-markets in Asia and other emerging economies.
• Model updates suggest greater earnings potential on a standalone basis, with revised price targets reflecting greater confidence in operational execution.
• Rising domestic power demand and a favorable regulatory environment are viewed as supportive tailwinds for Peabody's thermal coal business.

• Bearish analysts maintain neutral ratings and highlight uncertainty stemming from the termination of purchase agreements and potential impacts on long-term earnings.
• Concerns persist regarding volatility in global coal markets and the risk that further regulatory changes could reverse current industry tailwinds.
• Recent adjustments in price targets reflect measured expectations for valuation. This indicates that substantial upside may already be priced in given existing fundamentals.
• Questions remain about the sustainability of profit margin improvements as competition and market dynamics continue to evolve.

What's in the News

• The Board of Directors amended and restated the company's by-laws as of October 14, 2025. The changes introduce new requirements for director nominations, enhanced procedures for stockholder meetings, and a severability provision. (Key Developments)
• From April 1, 2025 to June 30, 2025, Peabody Energy completed its previously announced share repurchase program. The company bought back a total of 23,757,702 shares, or 17.55% of outstanding shares, for $530.2 million. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has increased from $32.45 to $33.95, reflecting a modest upward revision in fair value.
• Discount Rate has risen slightly from 6.80% to 6.85%. This indicates a marginally higher perceived risk or required return.
• Revenue Growth assumptions have improved from 8.52% to 9.12%. This shows greater expectations for top-line expansion.
• Net Profit Margin estimate has increased from 10.54% to 11.51%. This suggests analysts anticipate stronger profitability.
• Future P/E Ratio has decreased from 8.80x to 8.52x, which implies slightly more conservative long-term earnings multiples.