What are MM’s targets for Whitehaven & coals stocks?
Hi, a question for Saturday.
The Latest Q&A
Answer
Hi Cameron,
Sorry but at this stage we haven’t really got a target price for WHC per se, the stocks rallying in an impulsive fashion on the upside with no end in sight, we remain buyers into weakness with our ideal current entry area ~$8.50 but into 2023 I would now be surprised if we didn’t see WHC break $10, or 8-10% higher with similar % gains likely for New Corp (NHC), WHC is generating ~40cps in free cash flow per month and they plan to buy back up to 25% of the shares on issue, which is clearly going to be supportive of the stock price – at least something looks good in these uncertain times!
NB: Free cash flow (FCF) is the cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets.
