U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
Investing.com - UBS has downgraded Coronado Global Resources Inc. (ASX:CRN) from Neutral to Sell while raising its price target to AUD0.26 from AUD0.17.
The downgrade follows Coronado’s reported negative US$73 million EBITDA loss for the first half of the year, which was in line with previously released expectations. UBS noted that the company achieved breakeven EBITDA in the second quarter, suggesting potential for more sustainable earnings in the second half of 2025.
Despite Coronado’s ongoing initiatives to improve its liquidity position, UBS analyst Lachlan Shaw indicated that strong free cash flow generation will likely remain difficult without sustained higher metallurgical coal prices. The firm believes metallurgical coal prices are unlikely to fall below US$180 per ton.
UBS maintains that additional industry closures and stronger demand would be necessary to drive coal prices higher. The firm made marginal adjustments to its near-term earnings per share estimates, reflecting a balance of higher U.S. costs and lower Australian costs.
The price target increase to AUD0.26 comes after UBS updated its outlook on costs, production volumes, and capital expenditure for the coal producer.
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