NEW YORK (TheStreet) -- Shares of Peabody Energy (BTU) , the world's largest private-sector coal company, rose 4.68% to $8.06 in afternoon trading Wednesday after the International Energy Agency predicted a surge in worldwide coal demand in the next five years.
The IEA released its annual Medium-Term Coal Market Report this week and said global demand would continue to rise in the next five years and would break 9 billion tons by 2019.
The agency said China would account for three-fifths of the growth in this five-year period despite the efforts of the world's most populous nation to keep its coal consumption in check. The IEA identified China, India, and other Asian nations as the main sources of coal consumption growth, which would offset declines in Europe and the U.S.
Separately, TheStreet Ratings team rates PEABODY ENERGY CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."