NHC didn’t correct as deeply as WHC hence it should be no surprise its recovery has been relatively muted, the broker downgrades that weighed on the stock in June appear to be behind us and we shouldn’t forget that brokers are happy to say sell fossil fuels in today’s ESG world. Similar to WHC the coal price will dictate moves through the 2H but after the large correction over the last 12 months we believe the risk/reward is firmly skewed to the upside.
- We remain optimistic toward NHC with an initial target close to $6.
MM is long and bullish toward NHC
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NB: We hold NHC in our Active Income Portfolio.
