New Hope Corporation Broker Ratings

Updated: March 20, 2025

New Hope Corporation (ASX: NHC) reported its half-year earnings on Tuesday, with first-half profit up by 26% to $340.3 million, while underlying earnings rose to $517.3 million as its’ Bengalla mine reached full capacity at 13.4 million/t annually.

New Hope increased its interim dividend to 19 cents per share as production grew and unit costs declined despite lower coal prices.

New Hope Corporation Broker Ratings

• Bell Potter maintains its Hold rating and $4.30 target price for New Hope (NHC) despite the company's 1H25 net profit of $340m exceeding the broker's $318m forecast. This outperformance was primarily due to an impairment reversal related to legal action, offset by an impairment of the Bridgeport energy business. The broker remains cautious about the coal price outlook, not anticipating significant improvement until the second half of 2025. Bell Potter has modestly increased its EPS forecasts by 4% for FY25 and 1% for FY26.

• Citi maintains its Buy rating on New Hope Corporation (NHC) despite reducing its target price to $5.30 from $5.80. The broker notes New Hope's impressive interim EBITDA growth of 22% year-on-year to $517.3m, driven by the New Acland ramp-up and a significant 31% reduction in free on rail cash costs to $55.5/t. While the fully franked interim dividend of 19¢ per share aligned with consensus, it fell 1¢ short of Citi's estimate. Citi has lowered its FY25 and FY26 earnings forecasts by 6% and 15%, respectively, due to weaker thermal coal prices, but maintains its positive outlook on the stock.

• Macquarie maintains its Neutral rating and $4.25 target for New Hope after 1H25 results closely matched the consensus. The 19¢ dividend met expectations, while the $100m buyback announcement was a positive surprise. The broker reduced EPS estimates by 4-6% for FY25-FY26 due to higher dilution from convertibles. The resolution of legal challenges provides greater certainty for New Acland's ramp-up.

• Morgans maintains its Add rating for New Hope, though its target price slips to $4.90 from $5.15. The broker notes that while 1H25 EBITDA was pre-reported, first-half cash flow was softer than expected at $317m due to a non-cash impairment reversal and provision pricing settlement.

Want more stock market news like this?

Sign up for our daily stock market newsletter:

DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make economic decisions. We strongly recommend conducting your own research before making any investment.