In Nov 13 Goldman upgraded BTU to "Buy" and raised the price target from $21 to $26. How can we trust these analysts from GS?
Just in Nov 13 GS upgraded BTU to "Buy" and raised the price target from $21 to $26. Read the Article:
Goldman Sachs analyst Neil Mehta upgraded the rating on Peabody Energy Corporation (NYSE: BTU [FREE Stock Trend Analysis]) from Neutral to Buy, and raised the price target from $21.00 to $26.00.
In the report, Goldman Sachs noted, “We upgrade shares of Peabody Energy (BTU) to Buy from Neutral with 31% total return (including dividends) to our 6-month target price of $26. Four factors underpin our positive view of BTU: (1) the potential for continued cost cutting and volume growth in Australia, (2) the bottoming in met coal prices, (3) improving cash flow and (4) attractive relative and absolute valuation. Even after outperformance in the last three months, BTU has still lagged the S&P500 by over 50% in the last 12 months and 110% in the last 3 years. Our Buy rating comes in the context of a Neutral coverage view of the coal sector.”
Actually they shorted between 20 and 21. They are just letting you know today as they downgrade coal, have it go lower and be able to cover for another 100 million dollar gain for the day. They say it is easy. Just do as we do not as we say. The SEC says that there is nothing illegal it just comes with the power and the money.