Its always good to get an alternative opinion.
UBS note that coal companies have huge ESG risk. Which is very very true. Therefore they assign only a 10% probability to any new mines getting approved, and therefore very little growth incorporated in their valuation model.
They also use a 15% discount rate for WHC to take into account the ESG risk. This implies that you still get 15% return from owning the company.
Interestingly they increased their average forecast coal price out to $US300 to the end of 2024.
And although their target price is 9.20, you still get a 35% dividend in the next two years.
The buyback will put a floor in the price.
Only surprise upside from here.
Target $18.72, page-2736
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Last
$7.09 |
Change
0.150(2.16%) |
Mkt cap ! $5.931B | |||
| Open | High | Low | Value | Volume |
| $7.00 | $7.17 | $6.99 | $56.08M | 7.917M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 137399 | $7.08 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.10 | 9407 | 2 |
View Market Depth
| Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
| WHC (ASX) Chart |