Morgans lifts its target price to $2.65 from $2.30 on higher than expected thermal coal prices. Seaborne thermal coal markets are thought to be looking strong into end of 2021 on a confluence of factors including a Chinese domestic supply crisis.
The broker considers cashflow leverage is compelling and looks to finally be getting some market recognition. The company reports on August 26, and it’s felt the focus will likely remain on Narrabri’s recovery and its impact on price realisations.
Sector: Energy.
Target price is $2.65.Current Price is $2.33. Difference: $0.32 – (brackets indicate current price is over target). If WHC meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
