Following a fatal accident at Golding’s Baralaba North coal mine, operations have been halted pending investigation. NRW Holdings’ Baralaba contract represents some 20% of FY19 mining division earnings and extends to 2021.
The broker awaits further developments before changing its forecasts but notes contract disruption and possible legal ramifications are potential scenarios. Buy and $3.05 target retained for now.
Sector: Capital Goods.
Target price is $3.05.Current Price is $2.47. Difference: $0.58 – (brackets indicate current price is over target). If NWH meets the UBS target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
