The company has indicated 2019 operating earnings (EBITDA) will now be below the guidance range of US$687-737m. Softer metallurgical coal prices in the fourth quarter are being blamed along with a -3% reduction in saleable production.
Credit Suisse adjusts estimates down for 2019 by -5% but retains 2020 assumptions. Outperform rating and $4 target maintained.
The broker considers the downgrade, whilst disappointing, largely immaterial in the larger picture when considering the company’s balance sheet and unchanged production plans at Curragh.
Target price is $4.00.Current Price is $2.01. Difference: $1.99 – (brackets indicate current price is over target). If CRN meets the Credit Suisse target it will return approximately 50% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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