Citi downgrades Australia's Whitehaven Coal to 'neutral' on debt levels, lower prices

Whitehaven Coal

27/07/2025 21:23

** Citi downgrades Australia's Whitehaven Coal WHC.AX to 'neutral' from 'buy'; hikes target price (PT) by 10 Australian cents to A$7.10 per share

** Highlights Australia's top independent coal miner's higher-than-expected net debt of A$0.6 billion ($394.80 million) at Q4 end despite lower capital expenditures in the second half

** Brokerage also downgrades earnings outlook for FY25 by 30% on WHC's lower-than-expected realised coal prices given in its recent production results

** Co posted a 9% rise in production in the fourth quarter on July 25

** However, Citi raises FY26 and FY27 earnings by 8% and 2% on lower unit costs; slightly hikes PT to A$7.10

** 14 analysts rated 'buy' on average; median PT is A$7.10, per LSEG-compiled data

**YTD, shares up 12.10% at A$6.95 as of last close

($1 = 1.5198 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))