New Hope shares tank on Macquarie downgrade
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The news: Shares in coal miner New Hope Corporation slumped in afternoon trade after Macquarie analysts downgraded their position on the stock and cut back their target price amid a disappointing production outlook.
The numbers: At 3:27pm AEST, shares in New Hope had slipped 8.2% to $4.20, erasing gains made on Tuesday.
Macquarie analysts cut their 12-month target price on the stock from $4 to $3.80. Meanwhile, Bell Potter analysts left their target price unchanged at $4.10.
The context: The Macquarie analysts downgraded their rating on the stock from ‘neutral’ to ‘underweight’ after New Hope presented a weaker than expected production growth path for FY26 to FY28 on Tuesday.
This is despite the release of FY25 earnings that were mostly in-line with expectations. The Macquarie analysts expect FY26 guidance to be issued in November 2025.
Analysts at Bell Potter reiterated their ‘hold’ rating on the stock, focusing more on New Hope’s “low-cost operations” which they believe will support capital investment commitments and strong shareholder returns.
They also noted that “beyond ramp-up of New Acland Stage 3, we see limited organic production growth pipeline and believe [New Hope] may participate in industry consolidation”.
The sources: Macquarie research, Bell Potter research
