Shares of Peabody Energy Corp (BTU) plummeted 5.05% in Wednesday's trading session, as investors reacted to concerns about the company's planned acquisition and a target price cut by analysts.

The coal mining giant's stock came under pressure after Jefferies analyst Christopher LaFemina warned that the risk of Peabody's planned takeover of Anglo American's metallurgical coal assets failing has "materially increased." LaFemina pointed out that Peabody's share price has fallen sharply since the deal was announced, and metallurgical coal prices have collapsed, casting doubt on the viability of the up-to $3.78 billion acquisition. Adding to the uncertainty, a recent fire at one of the mines Anglo American intends to sell has brought the deal under further scrutiny.

Compounding the negative sentiment, Benchmark cut its target price for Peabody Energy from $26 to $23. This adjustment likely reflects the growing concerns about the company's future prospects and the challenging environment in the coal market. The combination of these factors appears to have prompted investors to reassess their positions, leading to the significant drop in Peabody's stock price during the trading session.