Stronger-than-expected thermal coal pricing drives upgrades to Morgans FY22-23 earnings (EBITDA) forecasts, after New Hope Corp reported FY21 results. Operating cashflow was a miss as abnormals linked to Acland’s ramp-down were underestimated.
Assuming no M&A or major investment in the near-term, the broker sees upside for both capital and shareholder returns. The target price rises to $2.61 from $2.08 and the Add rating is maintained.
Sector: Energy.
Target price is $2.08.Current Price is $2.15. Difference: ($0.07) – (brackets indicate current price is over target). If NHC meets the Morgans target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
