Whitehaven Coal (ASX:WHC) is seen in a favorable light by analysts at Jefferies regarding a possible acquisition of Daunia and Blackwater mines from BHP Group (ASX:BHP) under various conditions.
They project a valuation range for both mines of A$5 billion to A$7 billion.
The brokering firm foresees an Earnings Per Share (EPS) accretion for Whitehaven Coal if the possible acquisition goes through.
While maintaining a price target of A$7.40 per share, they retain a ‘hold’ rating.
The chance of Whitehaven participating in an equity raise to fund the whole acquisition isn’t ruled out by the brokerage.
Responses from 12 analysts reveal 3 rating the stock as ‘buy’ or higher, 7 as ‘hold’, and 2 as ‘sell’ or lower; their median price target is A$7.00.
Year to date (YTD), Whitehaven’s stock has fallen 23.7% on the London Stock Exchange Group (LSEG) data, as of last closure.
Whitehaven Coal (ASX:WHC) is an Australian coal company owning and operating mines in New South Wales and Queensland.