US coal giant Peabody (BTU US) has surged over 70% since mid-September, with the coal miner discussed in late September here. The $1 billion share buyback and steady dividend policy, with the company pledging to return at least 65% of free cash flow to shareholders, is a sign that the coal stocks can come back to life after a tough few years. While we aren’t expecting WHC to play catch-up with BTU, we are targeting new highs for 2025, and potentially a test of $9.
- We believe the risk/reward towards WHC is attractive around current levels.
Trade Idea: Buy Whitehaven Coal (WHC) using a limit of $6.72 with stops below $6.36 – for 5% risk.
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