Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Stock Downgrades: Peabody Energy Is No Sherman Tank


Wall Street ratings agencies set the tone for today's stock market.

(Hat tip to an animated film for today's title.) Shares in Peabody Energy (NYSE:BTU) are, if not tanking today, then certainly slipping substantially before the bell. Goldman Sachs (NYSE:GS) cuts the coal company to Neutral from Buy, trimming its price target by $5 to $16 in the process. Goldman sees better value in industry competitor CONSOL Energy (NYSE:CNX), whose rating it concurrently raised this morning.
David Dwight Eisenhower, to give our 34th president his original birth name, did not do U-turns, as Hitler's armies learned to their considerable cost seven decades ago today. David Alan Tepper? Not so much. The hedge fund honcho, a nervous Nellie on equities only 23 days ago, has suddenly changed his tune and that flip-flop sent a salivating Dow Average (INDEXDJX:.DJI) and S&P 500 Index (INDEXSP:.INX) to fresh bests. Truth be told, only one of the Mario Brothers was truly Super -- Nintendo (OTCMKTS:NTDOY) nosedived 1.17% amid the ebullience after its eponymous plumber didn't have investors doing cartwheels -- but that was more than enough for Mr. Market. Italy's Draghi has multiple fiscal leaks to fix, but he is at least off to an auspicious start. Other equities to miss out on the fun included telecom titans Sprint (NYSE:S) and T-Mobile (NYSE:TMUS), which fell 4.04% and 2.30% respectively as their proposed merger got an icy reception. (It's always something -- their arch-rival at the AT&T (NYSE:T) Center was way too warm amid the Heat.) And an unloved Life Time Fitness (NYSE:LTM) lost 11.69% in posting the NYSE's poorest percentage performance, with its stock nixed even as 86-year-old T. Boone Pickens took the president to task for his timidity on the treadmill. No response on that, at least as of yet, from the gym rats in Red Square.
It's quite a quiet Friday for quarterly earnings announcements, although Sears Hometown and Outlet Stores (NASDAQ:SHOS) released results earlier this morning. In economic action, April consumer credit is expected to contract from the prior month's pace at 3:00 p.m. EDT.
Now let's look at this morning's rating reductions, an eclectic bunch featuring a poultry processor and tech equity, plus headline stock Peabody Energy.

Apache Corp (NYSE:APA): Shares get moved to Market Perform from Outperform with Wells Fargo.
Frontier Communications (NASDAQ:FTR): Jefferies cuts the company to Hold from Buy.
Nexstar (NASDAQ:NXST): NXST is now Equal Weight from Overweight at Evercore.
Peabody Energy: Goldman Sachs gives today's headline stock a Neutral-from-Buy downgrade.
Rally Software Development (NYSE:RALY): This marvelously misnamed equity, imploding 22.26% before the bell, is cut to Market Perform from Outperform with William Blair after the company issued a disappointing revenue projection.
Swift Energy (NYSE:SFT): Wells lowers its investment assessment to Market Perform from Outperform.
Tyson Foods (NYSE:TSN): The chicken processor is taken to Hold from Buy at BB&T Capital Markets.

Also see:

New Stock Coverage: D-Day for Sabre Rattling

Stock Upgrades: Jakks Pacific Storms the Beaches
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos