Surge in AI Power Demand Sparks Coal Comeback; Jefferies Predicts Over 30% Increase for One Stock
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
Improving Outlook for Coal Industry: The coal industry's prospects are brightening due to rising U.S. power demand, particularly from artificial intelligence data centers, with thermal coal demand increasing by 15% compared to last year.
Analyst Upgrades and Market Potential: Jefferies upgraded Core Natural Resources and Peabody Energy, raising their price targets significantly, indicating potential upside for investors as the coal sector may be entering a new earnings upgrade cycle.
Analyst Views on BTU
Wall Street analysts forecast BTU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BTU is 29.14 USD with a low forecast of 24.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 36.060
Low
24.00
Averages
29.14
High
34.00
Current: 36.060
Low
24.00
Averages
29.14
High
34.00
About BTU
Peabody Energy Corporation is a coal producer, providing essential products for the production of reliable energy and steel. The Company owns interests in coal mining operations located in the United States and Australia, including interests in Middlemount Coal Pty Ltd. The Company engages in the direct and brokered trading of coal and freight-related contracts. Its segments include Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other. The Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal. The Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, the United States. The Company owns the southern portion of the Wards Well tenement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
