Peabody Energy Shares of Peabody Energy hit a 52-week low on Thursday of $22.75. The stock's 52-week high of $63.08 was set one year ago. "We raise BTU to Buy for three reasons: (1) Improving China macro data and Newcastle thermal prices should drive greater Street credit for BTU's Australia business (better growth profile than covered US peers). (2) BTU is exposed to our view that PRB-levered stocks should see improved relative performance as PRB prices continue to rise from below cash costs today to mid-cycle by the end of 1H2013. (3) Its valuation given a 9% 3-year EBITDA CAGR screens favorably vs. the coverage group. Also, discussion of China thermal and Mongolia met coal JVs remain potential long-term catalysts," Goldman Sachs analysts wrote in a May 28 report. Peabody Energy's forward P/E is 6.35; the average for coal companies is 16.76. For comparison, Walter Energy ( WLT) has a higher forward P/E of 7.01. Twenty-six of the 30 analysts who cover Peabody Energy rated it buy. Three analysts gave the stock a hold rating and one rated it sell. The stock has fallen 29.48% year to date.