livewiremarkets C. Capolingua 20.12.24 has provided a list of 11 Broker firms for WHC estimates for 2025 -the average is $8.84; & also nominates WHC as the most preferred coal stock on the ASX.
Capolingua said
"Morgan Stanley blames recent weakness in coking coal prices on prevailing weak demand from steel producers through most of the year [2024], including disruptions to key Indian producers due to that country’s elections. On the supply side, the broker points to increased production coming out of Mongolia.
According to Citi, improving demand from India and a pickup in infrastructure spending there and in China, should support coking coal prices in a range between US$210-$220/t in 2025 (versus the current price of US$208/t). Morgan Stanley’s 2025 coking coal price target offers even less upside at US$209/t, but this does improve to US$223/t in 2026...
The broker{Morgan Stanley] points out that whilst decarbonisation trends are growing, China’s imports of thermal coal have risen 80% in the past 2-years.
They’re “showing no sign yet of peaking out”, says Morgan Stanley, who notes new official contract guidelines for 2025 are likely to “further boost import volumes”. This, along with “tight” gas markets, should help drive stronger thermal coal prices heading into 2025, the broker notes.
These factors, along with upcoming peak winter demand, moved Morgan Stanley to this week raise its thermal coal price forecast for 2025 to US$135/t from $US129/t. An improvement, but only slender upside from the current price of US$131.50.
The demand picture is improving, but the market remains well supplied and Chinese thermal coal inventories “appear quite healthy for now”, Morgan Stanley notes.
Which ASX coal stock makes the Magnificent 7?
This one was particularly straightforward. With 11 out of 11 buy-equivalent ratings,Whitehaven Coal (ASX: WHC)deserves its title of highest rated ASX coal stock heading into 2025. FYI, WHC was well ahead of rivalNew Hope Corporation (ASX: NHC)which presently has a hold-equivalent Broker Consensus Rating of +0.29.
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Whitehaven Coal (WHC) is the highest rated ASX coal stock".
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