Despite lowered FY22 sales guidance (due to higher cost guidance) by Whitehaven Coal after 2Q results, Morgans actually upgrades FY22-23 earnings (EBITDA) forecasts on higher coal price estimates.
The analyst’s target price of $3.65 (down from $3.92) includes a premium to allow for upside risk for coal prices. It’s estimated the company offers 19% upside to the broker’s base case pricing scenario. Add rating maintained.
Target price is $3.65.Current Price is $2.70. Difference: $0.95 – (brackets indicate current price is over target). If WHC meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).