Morgans says the investment case for Coronado Global Resources is best illustrated by an approaching net-cash position, just months after two recapitalisations. Way-higher-than-expected pricing is thought to outweigh downgraded 2021 guidance.
The broker lifts its target price to $1.63 from $1.21. Were debt funding terms not complicating the ability to pay dividends, Macquarie believes Coronado’s shares would be trading much higher. Add rating maintained.
Sector: Materials.
Target price is $1.63.Current Price is $1.38. Difference: $0.25 – (brackets indicate current price is over target). If CRN meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
