Looking bright

From FN Arena :

Morgans rates WHC as Add (1) - Narrabri has successfully ramped back up to full production while the company pushed Maules Creek hard during the December quarter.Renewal of the Tarrawonga fleet will draw on $100m of new operating leases before the September quarter, while Morgans notes abnormally high coal stocks will delay the release of that portion of operating cash flow into the second half.

The broker believes the stock is a compelling exposure to stronger-than-expected thermal coal dynamics amid potential for capital management. Morgans maintains an Add rating and reduces the target to $5.82 from $6.00. Target price is $5.82 Current Price is $4.71 Difference: $1.11 If WHC meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges). Current consensus price target is $5.73, suggesting upside of 21.7%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY19:Morgans forecasts a full year FY19 dividend of 47.00 cents and EPS of 68.00 cents .At the last closing share price the estimated dividend yield is 9.98%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.93.

How do these forecasts compare to market consensus projections?Current consensus EPS estimate is 68.5, implying annual growth of 28.8%.Current consensus DPS estimate is 49.4, implying a prospective dividend yield of 10.5%.Current consensus EPS estimate suggests the PER is 6.9.

Forecast for FY20:Morgans forecasts a full year FY20 dividend of 27.00 cents and EPS of 46.00 cents .At the last closing share price the estimated dividend yield is 5.73%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.24. How do these forecasts compare to market consensus projections?Current consensus EPS estimate is 45.1, implying annual growth of -34.2%.Current consensus DPS estimate is 28.7, implying a prospective dividend yield of 6.1%.Current consensus EPS estimate suggests the PER is 10.4.Market Sentiment: 0.9All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources