CRN – Credit Suisse rates the stock as Outperform

Credit Suisse notes Australian metallurgical coal prices have experienced another rally and are now well above estimates. The backdrop: Chinese domestic coal output suppressed under safety and pollution controls, Mongolian exports constrained by the pandemic, Canadian exports affected by wildfires and a tight labour market in the US, all signalling the coal market is unlikely to soften soon.

Under a spot scenario the broker expects Coronado Global could reach net cash of US$140m by the end of the year. With a buoyant price in Australia and the US, the broker is positive about the stock and envisages upside with the share price trending towards the target of $1.60. Outperform maintained.

Sector: Materials.


Target price is $1.60.Current Price is $1.23. Difference: $0.37 – (brackets indicate current price is over target). If CRN meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).



About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →