NHC – Morgans rates the stock as Add

Morgans sees dividend upside for New Hope and thinks shares can re-rate as the market appreciates the scope of current cash flows, as thermal coal prices continue to rally. The target price jumps to $4.69 from $3.67 and the Add rating is unchanged.

With no obvious M&A targets, the broker believes the company may maintain a modest cash balance. The FY23 outlook for seaborne thermal coal pricing is also thought to be better than implied by the market.

Sector: Energy.


Target price is $4.69.Current Price is $3.53. Difference: $1.16 – (brackets indicate current price is over target). If NHC meets the Morgans target it will return approximately 25% (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 →