Coronado shares lift after analyst upgrades
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The news: Shares in Coronado Global Resources have lifted for a second straight session after analysts upgraded their earnings estimates for the company following a solid quarterly performance.
The numbers: Coronado shares were up nearly 5% to $1.38 in early trading on the ASX. This comes a day after the metallurgical coal producer said June quarter run-of-mine coal production jumped 24% from the previous quarter and sales volume rose 8.3%, prompting a flurry of earnings upgrades from analysts.
The context: Macquarie analysts upgraded their earnings estimates for FY24 and FY25 on the back of higher output and lower costs, and lifted their 12-month price target on the stock by 5% to $2.10, while keeping its ‘outperform’ rating.
UBS analysts also expect earnings to rise in FY24 and FY25 as lower realised prices are offset by volume uplift. They retained a ‘buy’ rating and an unchanged $1.95 per share price target.
Goldman Sachs analysts upgraded to their FY24, FY25 and FY26 earnings estimate on the company and retained its ‘buy’ rating. However, they lifted its price target on the stock by 6% to $1.80 a share.
What they said: “Coronado appears to have at last turned the corner operationally delivering a much stronger production performance than consensus, and the first quarterly production and cost beat in over three years,” Goldman Sachs analysts said in a note.
The sources: Macquarie Research, UBS Research, Goldman Sach research
