Here’s Why Jefferies Downgraded Peabody Energy (BTU) Farooq Thu, November 12, 2026 at 3:59 PM EST 3 min read BTU +1.60% ^GSPC -0.35% ^IXIC -0.39% Trade BTU on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the 10 Stocks Analysts Are Downgrading Right Now and Peabody Energy (NYSE:BTU) ranked 10th on this list.
Stocks slid again on Tuesday after a hotter-than-expected inflation report fed bets on higher interest rates, and all three major indexes finished lower. The Dow fell 0.30% to 52,231.89, the S&P 500 lost 0.38% to 7,520.93, and the Nasdaq Composite dropped 0.74% to 25,065.87.
Government data showed consumer prices rose 0.4% in October, the third straight monthly gain of at least that size, against the 0.3% economists expected. Core prices rose 0.3%, ahead of a 0.2% forecast, and traders spent the session weighing how many more rate increases may be coming.
Federal Reserve Governor Christopher Waller said the central bank should raise rates in December and consider a half-point increase, while Dallas Federal Reserve President Lorie Logan said at least two more quarter-point hikes are needed. Traders now see an 84% chance of a quarter-point move next month and a 15% chance of a half-point increase.
Jason Ware, chief investment officer at Albion Financial Group, told Reuters that investors are spooked by the possibility of a 50 basis point hike. That worry landed on a market that had already taken a beating: the Nasdaq closed nearly 12% below its October peak last week, and the S&P 500 sank 4.4% in a single session, its worst day since April 2025. For the other side of that debate, see our list of oversold AI stocks where Wall Street analysts see 50%+ upside.
Skyler Weinand, chief investment officer at Regan Capital, said stocks have seen a heavy rotation out of AI-related names and into defensive sectors such as healthcare. Technology took the sharpest hit. Last week the S&P 500 technology sector fell 7.3% and the Philadelphia semiconductor index dropped more than 12% as fears of a data-center slowdown spread after the midterm elections.
Oxford Economics expects the Fed to raise rates in December and again in March, while Kansas City Fed President Jeff Schmid described policy as still accommodative.
Peabody made it to our list because it drew an analyst downgrade on November 10 and has an average upside potential of 58%. Jefferies analyst Chris LaFemina downgraded Peabody Energy to Hold from Buy on November 10 and lowered his price target to $18 from $30. The downgrade reflects geological issues at the Centurion mine in Australia that have delayed its restart. Centurion produced only about 45,000 tons in October, and Jefferies reduced its operating assumptions for the mine to reflect lower volumes and higher costs. The firm noted that Peabody is operating well in its other segments.
Peabody mines coal in the US and Australia, selling thermal coal for power and metallurgical coal for steelmaking. It cut its fourth-quarter Centurion sales guidance to 300,000 to 500,000 tons after the longwall hit a faulted section, and it lowered full-year seaborne metallurgical volume by 600,000 tons, with costs rising about $15 a ton. Management now points to the third quarter of 2027 for a significant longwall move. Peabody reported a third-quarter net loss of $0.27 a share, but adjusted EBITDA was $97.5 million, with every segment positive and realized prices up nearly $17 a ton from the prior quarter. Our ranking of the best American mining stocks covers other miners.
While we acknowledge the risk and potential of BTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Academy Sports (ASO) Turns A Tariff Refund Into A Profit Surge and Costco (COST) vs. Walmart (WMT): Which Retailing Giant Has a Wider Moat?
Disclosure: None. Follow Insider Monkey on Google News.
