NHC – Credit Suisse rates the stock as Neutral

Credit Suisse has upgraded its outlook for thermal coal prices as the market has started to show signs of improvement. The bounce back to the high US$50/t potentially suggests the worst might be behind the market.

On the supply side swing tonnage has exited the market in several countries enabling the price to find a bottom. The broker’s long-term price of US$75/t is based on a view that current prices are unlikely to be sustained as opposed to a strong conviction on the demand side. Neutral rating and $1.40 target retained.

Sector: Energy.

Target price is $1.40.Current Price is $1.29. Difference: $0.11 – (brackets indicate current price is over target). If NHC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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