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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (27686)	10/21/2008 10:20:49 PM
From: LoneClone	Read Replies (1) \| Respond to of 193463

Analyst cuts '09 profit outlook for Peabody Energy Tuesday October 21, 8:22 pm ET ca.us.biz.yahoo.com Analyst keeps 'Buy' rating on Peabody Energy, but slashes target price, outlook NEW YORK (AP) -- An analyst on Tuesday kept his "Buy" rating on Peabody Energy Corp., but slashed his target price and fourth-quarter and 2009 profit forecast, citing worries over lower coal prices in Australia. Analyst Paul Forward of Stifel, Nicolaus & Co. cut his price target to $56 from $77. He also lowered his fourth-quarter estimate to 67 cents per share from 83 cents and slashed his 2009 outlook to $4.50 per share from $5.90. He wrote in a note that Peabody's fourth-quarter guidance assumes a much smaller contribution from the firm's trading and brokerage operations during the period than the first three quarters of the year. He said the company's full-year guidance implied earnings of 47 to 72 cents a share in the quarter. "The increasing importance of Australia leaves Peabody with significant earnings risk in 2009 if Pacific Rim coal markets continue their recent decline," he wrote. The change also reflects the strengthening U.S. dollar compared with the Australian dollar since mid-July along with global economic headwinds that could undercut Asian steel and power demand in 2009. He estimates that 52 percent of the St. Louis company's profits in 2009 will come from Australia. Forward did raise his full-year profit outlook to $3.20 from $2.88 to reflect the company's earnings report last week. On average, analysts surveyed by Thomson Reuters forecast earnings per share of 79 cents in the fourth quarter, $3.12 in 2008 and $5.73 in 2009. And with the company's shares trading below other coal mining companies, "we believe investors' fears of a recession-induced downdraft in coal pricing has presented an attractive entry point for investors." Peabody shares fell 3 percent, or $1.14, to $36.69 Tuesday. The shares have traded between $24.08 and $88.69 over the past year.