Price targets for Whitehaven Coal (ASX:WHC) have been reduced by analysts, following a disappointment in the company’s annual production forecast for fiscal 2024.

Citi bank has cut its price target for Whitehaven to A$7.60 from A$7.80, while financial advisory firm, Ord Minnett, has taken it down to A$7.20 from A$8.40.

Last Thursday, Whitehaven predicted a weaker than projected annual managed coal output for FY24, which also prompted a suspension of their buyback programme.

Whitehaven (ASX:WHC) is expected to face several headwinds in FY24 including large tax payments, closure of Werris Creek, and significant development capital expenditure, which will all likely affect their free cash flow, according to Ord Minnett.

Citi bank has consequently reduced its FY24 and FY25 EBITDA estimates for the country’s largest independent coal miner by 23% and 15%, respectively.

This downgrade in earnings is due to weaker production and higher costs.

Out of 12 analysts, five rate the stock as ‘buy’ or higher, five suggest to ‘hold’ and two advise to ‘sell’ the stock.

Their median price target is A$7.60, according to Refinitiv data.

As of the last closing, Whitehaven’s stock was down 26.5% this year.

Whitehaven Coal (ASX:WHC) is Australia’s largest independent coal miner.