Far stronger-than-expected thermal coal pricing drives Morgans forecast earnings (EBITDA) for FY21-22 up by 27% and 43%. The target price also increases to $2.08 from $1.70 and the Add rating is unchanged.
The broker believes recent coal trading activity points to further upside risk into the September quarter. Management has flagged potential acquistions in coal, other resources and potentially in other sectors.
The size and timing of the recent $200m convertible note issue suggests to the analyst the company may be a credible potential bidder for BHP Group’s ((BHP)) Mount Arthur and/or BMC assets.
Sector: Energy.
Target price is $2.08.Current Price is $1.82. Difference: $0.26 – (brackets indicate current price is over target). If NHC meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
