Whitehaven shares are heating up on Wednesday.
The post Why is the Whitehaven share price accelerating 6% today appeared first on The Motley Fool Australia. –
The Whitehaven Coal Ltd (ASX: WHC) share price is pushing higher in mid-afternoon trade.
Last Wednesday, the coal miner released its March quarterly report which excited the market. This led the company’s shares to reach a 52-week high of $4.94 that day.
While Whitehaven shares have slightly retraced, they are up 6.14% to $4.67 at the time of writing.
Let’s take a closer look at what could be driving these gains today.
Whitehaven shares on the rise
With no market-sensitive news out of the company since its production report, it appears investors are reacting on a series of broker notes.
Goldman Sachs remains confident on Whitehaven shares, despite cutting its 12-month price target by 1.9% to $5.20. This represents a potential upside of around 11% based on the current share price.
Its analysts believe the miner’s shares are a buy as it is well-placed to benefit from the strong coal prices.
The broker acknowledged the already tight global coal markets which have the potential to be further impacted. It said that the Russia-Ukraine war is putting Russian coal exports at risk based on possible sanctions by European & Asian utilities and steel mills.
In addition, Morgans had a similar view with Goldman Sachs, raising its rating of Whitehaven shares by 2.7% to $5.24.
However, the most bullish broker note came from Ord Minnett, which lifted the company’s shares by 30% to $6 apiece. According to their estimates, this implies an upside of 28% from where the Whitehaven share price trades today.
Whitehaven share price summary
In the past 12 months, Whitehaven shares have surged 270%, with year-to-date gains closing in on 80%.
Whitehaven commands a market capitalisation of roughly $4.74 billion, making it the 103rd largest company on the ASX.
The post Why is the Whitehaven share price accelerating 6% today appeared first on The Motley Fool Australia.
Should you invest $1,000 in Whitehaven right now?
Before you consider Whitehaven, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whitehaven wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
How might the election outcome impact the outlook for ASX energy shares?
Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge
Why are some ASX coal shares flaming out today?
Why Alliance Aviation, Life360, Ramsay Health Care, and Whitehaven Coal are racing higher
Coal hard cash: Here’s why the Whitehaven share price just hit a multi-year high
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
