We have downgraded our recommendation on Peabody Energy Inc. (NYSE:BTU) to Underperform from Neutral as the fourth quarter results of the company disappointed expectations and missed our projection by quite a margin.
Peabody, like other coal generators, continues to face stiff competition from natural gas producers and this competition is not expected to dissipate going ahead. Besides, Peabody depends on a small group of customers for bulk sales. Any unfavorable contract or failure to renew … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards