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April 26, 2026 - Peabody Energy Corp's stock fell 7.20% as it hit a 20-day low amid significant challenges in the coal industry. The U.S. Energy Information Administration (EIA) projects a decline in U.S. coal production to 513.9 million short tons by 2026, driven by increasing renewable energy use and the retirement of coal-fired power plants. Additionally, the U.S. Sustainability Plan aims for 100% carbon-free electricity by 2030, which is expected to further compress coal demand. The coal industry ranks poorly, with earnings estimates for 2026 revised down by 54.7%, reflecting a lack of confidence in future growth.
Reason
BMO Capital lowered the firm's price target on Peabody to $40 from $44 and keeps an Outperform rating on the shares as part of a broader research note previewing Q1 results in Metals and Mining. Earnings for most companies under coverage are expected to increase in Q1, supported by higher underlying commodity prices, the analyst tells investors in a research note. The firm added however that its reduced price target reflects the company announcement that met coal sales from the Centurion mine will be lower than previously expected due to greater-than-anticipated mine commissioning challenges.
Valuation of BTU
Peabody Energy Corp (BTU) is now in the Fair zone, suggesting that its current forward PS ratio of 0.68 is considered Fairly compared with the five-year average of -2.96. The fair price of Peabody Energy Corp (BTU) is between 24.78 to 35.89 according to relative valuation methord.
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