Analysts anticipate a potential decline in New Hope Corporation’s (ASX:NHC) future earnings amid a reduction in thermal coal demand.

The company has reported an approximately 11% increase in earnings for fiscal year 2023, a figure that was consistent with Jefferies' projections but slightly below those by Citi and Macquarie.

Citi, despite raising its price target on New Hope’s stocks to A$5.50 from A$5.30, has downgraded it to ‘Sell’ due to discontentment with the company’s shares, which have risen about 32% since July lows.

Citi has expressed the belief that the recent thermal coal price increase resulting from LNG disputes is excessively done.

The bank predicts that demand for thermal coal will diminish into the shoulder season, leading to an 11% and 19% reduction in EBITDA estimates for fiscal years 2024 and 2025, respectively.

Macquarie maintains an ‘underperform’ rating on the company’s performance although it has readjusted its price target by 2% to A$4.20.

Jefferies maintains a ‘hold’ rating on its stocks while revising its price target to A$5.30 from A$5.20.

On average, analysts hold an equivalent of a ‘hold’ rating on New Hope; their median price target is A$5.30, while LSEG’s data shows the stock has risen by 0.8% this year to date.

New Hope Corporation (ASX:NHC) is an Australian company engaged in coal mining.