Whitehaven Coal’s June Q production beat the broker by 4%, suggesting operational issues appear to be under control, although some sales have shifted in FY20.
Coal price weakness has held the stock back recently, but the broker believes current dynamics are unsustainable and the price can track back towards US$80/t.
On that basis, the broker suggests now is a good time to accumulate. Target falls to $4.98 from $5.15, Add retained.
Target price is $4.98.Current Price is $3.76. Difference: $1.22 – (brackets indicate current price is over target). If WHC meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).