Morgans raises its FY22-24 thermal coal price assumptions by 24%-42%, and increases its long-term price to US$80/t from US$75.
The broker sees clear upside risk to Whitehaven Coal’s dividends, with physical market feedback suggesting ongoing coal price strength above consensus forecasts.
The analyst feels that recent energy market dynamics has alerted investors to the cruicial part thermal coal plays and the compelling outlook for Whitehaven Coal. The target rises to $5.20 from $3.72. Add.
Sector: Energy.
Target price is $5.10.Current Price is $4.57. Difference: $0.53 – (brackets indicate current price is over target). If WHC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
