Whitehaven Coal (WHC)
Do you have a view on the fundamental value of WHC?
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Answer
Hi Chris,
We value WHC around $9, though that will ultimately come down to the price of coal.
WHC has leveraged itself for a recovery by coal since buying some of BHP’s coal assets in April last year while at the same time evolving itself into a more metallurgical coal focused company.
While Macquarie downgraded their coal price forecasts yesterday, and the coal stocks to Neutral, the bulk of the market is more positive, with 15 buys on the stock from 16 analysts i.e. MQG is the only Hold. The consensus price target is $8.49
- If we had no position in WHC we would be buying today.
