UBS cuts Coronado stock rating, lowers price target to AUD0.19

Published 15/05/2025, 13:56
UBS cuts Coronado stock rating, lowers price target to AUD0.19

On Thursday, UBS analyst Lachlan Shaw adjusted the outlook on Coronado Global Resources Inc. (CRN:AU), shifting the stock rating from Buy to Neutral. Along with the rating change, the price target was reduced to AUD0.19, down from the previous target of AUD0.31. Shaw’s analysis indicates that Coronado remains closely tied to the coal market, which is currently facing a less favorable outlook.

The downgrade follows Coronado’s first-quarter update for the fiscal year 2025, prompting UBS to revise its operational assumptions and financial projections for the company. Despite expectations that Coronado will achieve productivity and cost improvements throughout 2025, the firm anticipates margin pressures will delay longer-term growth and related capital expenditures.

Shaw’s report suggests that, after evaluating various scenarios, it appears Coronado will require additional funding. The reassessment has led to a substantial cut in earnings per share (EPS) predictions for the years 2025 and 2026. This revised financial forecast has been a crucial factor in UBS’s decision to adjust the stock rating and price target for Coronado.

The downgrade and new price target by UBS reflect the firm’s updated view on Coronado’s financial health and market position. The lower earnings projections and the need for further funding have contributed to a more conservative stance on the stock’s near-term potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.