WHC - UBS rates as Buy
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Whitehaven knew a cost increase was inevitable at Narrabri, but not quite as soon. The broker suggests the market has overreacted to the news. The company is selling less met coal from Maules Creek than planned, but at high prices.
With a strong balance sheet and healthy free cash flow, the broker sees the potential for material returns to shareholders. Buy retained. Target rises to $5.35 from $4.90.
Target price is $5.35.Current Price is $4.71. Difference: $0.64 - (brackets indicate current price is over target). If WHC meets the UBS target it will return approximately 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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